Article Summary –
President Joe Biden has criticized a Republican proposal to extend tax cuts for wealthy individuals and large corporations, arguing that the tax code should not favor the wealthy. Biden’s own tax policies propose an increase in the corporate tax rate, the expansion of the Child Tax Credit and the Earned Income Tax Credit, and tax increases for higher earners. In contrast, the Republican plan seeks to make permanent the tax cuts implemented under the Trump administration, which the White House has criticized as favoring large businesses and wealthy individuals while potentially damaging social programs.
President Biden Criticizes GOP Tax Proposal for Wealthy and Corporations
On April 15, President Joe Biden criticized a recent Republican proposal to extend tax cuts for wealthy individuals and large corporations. Biden posted on social media on Tax Day, asserting, “The way to make the tax code fair is to make big corporations and the very wealthy begin to pay their share.”
Biden Administration’s Statement on Tax Policy
In a White House statement, Biden administration criticized House Republicans for continuing to “side with the wealthy and big corporations” on tax policy.
Biden’s Tax Proposals
Biden’s 2025 budget proposal includes several tax policies such as increasing the Child Tax Credit, making Affordable Care Act tax credits for insurance premiums permanent, and expanding the Earned Income Tax Credit. Additionally, he called for an increase in the corporate tax rate to 27% from the current 21%.
Republican Study Committee’s Proposal
The budget proposed by the Republican Study Committee, a group consisting of 179 of the 218 House members, titled “Fiscal Sanity to Save America,” proposes making tax cuts for large corporations and wealthy individuals permanent.
According to Tax Policy Center analysis, making these cuts permanent would result in an average tax cut of over $175,000 for the top 0.1% of earners.
White House Criticizes Republican Tax Proposal
The White House criticized the committee for proposing additional tax cuts for large businesses and calling for the elimination of the estate tax. The Republican plan would also undo the 15% minimum tax for large corporations introduced in the 2022 Inflation Reduction Act. The White House has stated this would result in devastating cuts to essential programs and raise taxes on middle-class families.
Trump’s Tax Policy
The Trump tax policy was projected to stimulate the economy, with Trump claiming in 2017 that it would be “rocket fuel for our economy.” Nonetheless, the expected economic growth failed to materialize. On the contrary, economic growth under Biden has significantly outpaced growth under Trump.
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