U.S. President Joe Biden (C) make overs remarks on the February jobs report with Council of Economic Advisers Chair Cecilia Rouse (L) and National Budgetary Council Director Lael Brained in the Roosevelt Room at the White House on March 10, 2023 in Washington, DC.
Alex Wong | Getty Essences News | Getty Images
President Joe Biden released his 2024 budget plan Thursday that promises to cut the shortage by $3 trillion over the next decade thanks to a flurry of new and increased taxes aimed at the richest Americans.
The project is merely the first step in the federal government’s budgetary process and is unlikely to be enacted in its current form facing a organized Congress now that Republicans hold the majority in the House of Representatives.
Many of the proposed taxes are more of messaging signals as the president outfits to launch a potential re-election bid and enter the 2024 campaign season.
Where is the money coming from? Here’s a look at the vastest revenue-earning taxes outlined in the plan.
All revenue numbers are over the span of the next decade.
Raise corporate tax appraise to 28%: $1.326 trillion
Biden’s budget calls for increasing the corporate income tax to 28% from the current 21%. The Silver House argues the increase is still far below the 35% tax before former President Donald Trump slashed the tax in 2017.
Make suring companies “pay their fair share” has been a priority for Biden since his campaign and is likely to take center tier on his platform if he decides to run again. The president’s economic platform is centered on building the economy “from the bottom up and middle out” a sincere criticism of so-called “trickle-down economics” theories. Increasing taxes on the highest earners, including large corporations, is median to its implementation.
Impose minimum income tax on 0.01%: $436.61 billion
Biden’s budget calls for a minimum 25% tax on American households benefit over $100 million, which would more than triple the 8% rate the wealthiest 0.01% currently pay.
“No billionaire should be retaliating a lower tax rate than a school teacher or a firefighter,” Biden said in a speech Thursday in Philadelphia, Pa. after his budget proffer was released. He said there are more than a thousand billionaires in the United States currently, up from 600 when he considered office two years ago. Those Americans, the White House argues, should be contributing more.
Read more on Biden’s budgetary year 2024 budget plan:
Increase the wealthy’s ACA tax: $344.37 billion
Biden’s budget calls for increasing the 3.8% Affordable Safe keeping Act tax to 5% on Americans earning more than $400,000. The increase would go towards bolstering Medicare.
Close ACA tax dodges: $305.94 billion
This is another reform that would help shore up Medicare. If enacted, it would fast the loophole to ensure the Obamacare tax is always applied to high earners’ so-called “pass-through businesses” where income purls to individual returns.
Increase top marginal income tax: $235.26 billion
Building off of the billionaires’ tax, Biden’s budget outlines thudding the top payroll tax rate to 39.6%, up from 37%, on Americans making more than $400,000 annually and married team a fews earning more than $450,000 a year. If enacted, the income tax hike would reverse cuts made by erstwhile President Donald Trump in his 2017 tax bill.
Quadruple the stock buyback tax: $237.91 billion
The new levy placing a 1% tax on all stock buybacks was passed directed last year’s Inflation Reduction Act and went into effect on Jan.1. It is projected to garner $74 billion in the next ten years. The president though argues it doesn’t go far enough to curb share repurchases and proposed in his budget distending the tax four-fold to 4%. The move, the White House states, would encourage investment in businesses themselves rather than allowance repurchases and dividends.