The president is proposing to raise the corporate income tax rate to 28 percent from 21 percent.
President Joe Biden on March 11 will release his fiscal year 2025 budget, which is expected to feature major tax increases for the wealthy and businesses, reductions in defense expenditures, and initiatives to make housing more affordable.
The president’s budget plan, which outlines his financial priorities, will hold special symbolic significance this year as he seeks re-election.
Meanwhile, lawmakers are still struggling to fund the government for fiscal year 2024. They need to pass a second funding package of six bills, including one for defense, by the March 22 deadline.
This year, President Biden’s budget plan will be released 35 days late. Under the Congressional Budget Act of 1974, the president was supposed to submit his budget request to Congress on Feb. 5.
Here are a few highlights expected from the budget proposal for the fiscal year starting in October:
Tax Proposals
President Biden released a fact sheet ahead of his State of the Union address on March 7, previewing his tax proposals in his budget blueprint.
He proposes to raise the corporate income tax rate to 28 percent from 21 percent.
He also proposes increasing the corporate minimum tax rate to 21 percent. The minimum tax enacted as part of the Inflation Reduction Act in 2023 requires corporations with more than $1 billion in revenue to pay federal tax of at least 15 percent of their profits.
President Biden’s plan also quadruples the stock buyback tax in response to the surge in share buybacks by companies in recent years.
He proposes imposing a minimum tax on the wealthy, requiring them to pay at least 25 percent of their total income, including unrealized capital gains, each year.
“Do you really think the wealthy and big corporations need another $2 trillion in tax breaks?” President Biden asked during his State of the Union address on March 7. “I sure don’t. I’m going to keep fighting like hell to make it fair.”
He also said he wouldn’t increase taxes for those earning less than $400,000.
By Emel Akan
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