Biden to highlight plans to deny tax breaks to wealthy companies, raise corporate tax rate in State of the Union

President Biden will outline his tax policy goals for a second term during the State of the Union address Thursday, which involve him denying tax breaks for companies with high-paid employees and raising the corporate tax.

The president is set to put out his budget next week, which White House officials said aims to reduce the deficit by $3 trillion over 10 years.

On Thursday, Biden will announce a proposal to deny corporations a tax deduction when they pay more than $1 million to any employee, which White House officials argue will combat skyrocketing executive pay seen in recent years.

He will also highlight his plans to bump the corporate tax rate up to 28 percent from the level set by former President Trump’s 2017 tax cuts, which put it at 21 percent. His plan includes ensuring that billion-dollar corporations pay at least 21 percent of their income in taxes and imposes a 21 percent rate on multinational corporations.

Trump’s tax cuts are on the line in the 2024 election, with Democrats opposing a blanket extension of the law but Republicans hoping to extend it if they win Congress and the White House.

Biden’s speech will also highlight that he is proposing a 25 percent minimum tax on the wealthiest 0.01 percent of Americans with a wealth of more than $100 million, and that he wants to restore the expanded child tax credit to include 18 million more children.

“President Biden will highlight that lowering costs for working families is his top economic priority,” national economic adviser Lael Brainard told reporters.

“The president will also lay out his vision to make our tax code fairer and to lower the deficit by making big corporations and the wealthy pay their fair share,” she said, adding that he wants to rework the tax code so that “billionaires do not pay less than school teachers or firefighters and to ensure the wealthy cannot get away with cheating on their taxes.”

Biden is also expected to repeat his stance throughout his administration that taxes shouldn’t be raised for any Americans making less than $400,000 a year.