President Biden to push corporate, billionaire tax hikes at State of the Union, drawing contrast with Trump

WASHINGTON ― President Joe Biden will unveil new proposals to raise taxes on corporations and billionaires during Thursday's State of the Union address, according to the White House, as he looks to make a sharp contrast with the economic policies of former President Donald Trump.

Biden is expected to revive a plan to reverse the corporate tax rate cut that Trump and congressional Republicans passed in 2017 by raising the rate from 21% to 28%. He will propose increasing a new minimum on the largest billion-dollar corporations − which he signed into law in 2022 − from 15% to 21%.

And Biden will call for new proposals to deny tax deductions for corporations that pay any employee more than $1 million and close a loophole that gives tax breaks to owners of corporate jets.

"President Biden is fighting to make our tax code reward work, not wealth, so billionaires do not pay less than school teachers or firefighters and to ensure the wealthy cannot get away with cheating on their taxes," said Lael Brainard, director of the National Economic Council.

Biden is also proposing a new 25% minimum tax on Americans with more than $100 million in wealth − the 0.01% wealthiest Americans.

The White House says none of Biden's tax plans would raise a penny of taxes on anyone earning $400,000 or less.

More: President Biden faces pivotal 2024 State of the Union, chance to reset race against Trump

Biden's corporate tax overhaul is a direct counter to the economic legacy of Trump, the presumptive Republican nominee. The proposals, which revive similar past attempts by Biden to raise taxes on corporations, are unlikely to gain momentum in Congress before the November election with Republicans controlling the House.

Biden will use his State of the Union speech to tout a historic economic rebound following the pandemic, pointing to a booming jobs market, unemployment at a 50-year low and massive investments in infrastructure and clean-energy manufacturing.

Yet the economy remains a lability in his likely rematch against Trump. Despite the economic gains, Biden has struggled to get credit for a strong economy, according to national polling, with voters still expressing concern about inflation.

Reach Joey Garrison on X, formerly Twitter, @joeygarrison.

This article originally appeared on USA TODAY: President Biden to propose corporate tax hikes at State of the Union