Biden Reveals New Economic Plan to Boost Middle Class and Cut Corporate Taxes

Biden’s State of the Union Address to Advocate for Increased Business Taxes, Middle Class Tax Reductions, and Reduced Deficits

President Joe Biden is set to deliver his State of the Union address on Thursday with a new plan to raise corporate taxes and lower taxes for the middle class. As the Democratic president seeks to address concerns about the rising cost of living, his economic agenda serves as a pitch to voters ahead of the upcoming election.

In a preview of his speech, Biden’s aides highlighted how his proposals differ from Republican plans to extend former President Donald Trump’s expiring tax breaks and further reduce corporate tax rates. The president’s plan includes making it so that corporations can no longer deduct the expense of employee pay exceeding $1 million, potentially generating $270 billion over the next decade. Biden also aims to raise the corporate tax rate to 28% from the current 21%, in addition to implementing a minimum tax rate for large companies to prevent tax avoidance practices.

Under Biden’s plans, billionaires would be required to pay a minimum of 25% in federal taxes on their income, while those earning over $400,000 would face higher Medicare taxes. The president intends to use some of these funds to expand the Earned Income Tax Credit and Child Tax Credit for low-income families. Furthermore, he is seeking to permanently lower health insurance premiums for those covered under the Affordable Care Act.

Biden’s upcoming budget proposal is expected to reduce the national debt by $3 trillion over the next decade, aligning with his previous budget pitch that was not approved by Congress last year. Despite Republican control of the House, Biden’s economic agenda outlines his vision and priorities for the country.

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