U.S. President Joe Biden (C) pauses in the Roosevelt Room of the White House on March 10, 2023 in Washington, DC along with Council of Economic Advisers Chair Cecilia Rouse (L) and National Economic Council Director Lael Brained, comments on the February job report.
Alex Wong | News from Getty Images | Getty Images
President Joe Biden released his 2024 budget on Thursday, which promises to cut the deficit by $3 trillion over the next decade thanks to a spate of new and increased taxes on America’s wealthiest.
The proposal is just the first step in the federal government’s budget process and is unlikely to go into effect in its current form since Congress is now divided with Republicans holding a majority in the House of Representatives.
Many of the proposed taxes are more of a message signal as the president prepares to launch a potential reelection bid and enter the 2024 campaign season.
where does the money come from Here’s a look at the biggest tax revenues listed in the plan.
All sales figures relate to the next decade.
Increase in corporate tax rate to 28%: $1.326 trillion
Biden’s budget calls for an increase in corporate income tax from the current 21% to 28%. The White House argues the increase is still well short of the 35% tax before former President Donald Trump cut the tax in 2017.
Ensuring companies “pay their fair share” has been a priority for Biden since his campaign and will likely be at the heart of his platform if he decides to run again. The president’s economic platform focuses on building the economy “bottom-up and middle,” a direct critique of so-called “trickle-down economics” theories. Increasing taxes on top earners, including large corporations, is central to its implementation.
Collect minimum income tax at 0.01%: $436.61 billion
Biden’s budget includes a minimum tax of 25% for American households worth over $100 million, which would more than triple the 8% tax rate currently paid by the wealthiest 0.01%.
“No billionaire should pay a lower tax rate than a school teacher or a firefighter,” Biden said in a speech Thursday in Philadelphia, Pennsylvania, after his budget proposal was released. He said there are currently more than a thousand billionaires in the United States, up from 600 when he took office two years ago. These Americans, the White House argues, should contribute more.
Read more about Biden’s fiscal 2024 budget:
Increase ACA tax on the rich: $344.37 billion
Biden’s budget includes increasing the Affordable Care Act tax from 3.8% to 5% for Americans earning more than $400,000. The increase would go in the direction of strengthening Medicare.
Closing ACA tax loopholes: $305.94 billion
This is another reform that would help shore up Medicare. If enacted, it would close the loophole to ensure the Obamacare tax is always applied to so-called “pass-through” deals by high earners, where income flows into individual returns.
Upper Margin Income Tax Increase: $235.26 billion
Building on the billionaire tax, Biden’s budget calls for raising the top payroll tax rate from 37% to 39.6% if Americans earn more than $400,000 annually and married couples earn more than $450,000 annually. If enacted, the income tax hike would reverse the cuts made by former President Donald Trump in his 2017 tax law.
Quadruple share repurchase tax: $237.91 billion
The new levy of a 1% tax on all share buybacks was passed as part of last year’s inflation mitigation law and went into effect on January 1st. It is projected to take in $74 billion over the next ten years. But the president argues that this doesn’t go far enough to curb share buybacks, proposing in his budget to increase the tax fourfold to 4%. The move, the White House said, would encourage investment in companies themselves, rather than sharing buybacks and dividends.