In his upcoming State of the Union address, President Joe Biden will present an expanded plan to raise corporate taxes, with the intention of reducing budget deficits and providing tax relief for middle-class Americans. The Democratic president aims to address voters' concerns about the rising cost of living, though with Republican control of the House, passing this agenda into law seems unlikely.

Aides, including Lael Brainard, director of the White House National Economic Council, offered a preview of Biden's remarks, emphasizing the contrasting approaches between the president's proposals and Republican plans. Biden seeks to eliminate tax breaks inherited from former President Donald Trump's administration and lower corporate tax rates. On the other hand, Biden's plan aims to disallow corporations from deducting expenses for employee pay above $1 million, which is projected to generate $270 billion over the next decade. Additionally, the president aims to increase the corporate tax rate from 21% to 28%.

Furthermore, Biden plans to implement a minimum tax rate for major companies to prevent them from evading the IRS through accounting strategies, deductions, and preferential tax breaks. Under the proposed plan, billionaires would be required to pay a minimum of 25% in federal taxes on their income. Additionally, individuals earning more than $400,000 would face higher Medicare taxes to ensure the financial sustainability of the program.

The president intends to allocate a portion of these increased revenues to expand the Earned Income Tax Credit and Child Tax Credit, providing much-needed support to lower-income families. Furthermore, Biden aims to permanently lower health insurance premiums for those individuals covered by the Affordable Care Act of 2010.

Aides state that Biden's upcoming budget plan will aim to reduce the national debt by $3 trillion over the next decade, aligning with his previous budget proposal. However, it is important to note that his previous budget plan was not approved by Congress.

While Biden's proposed economic agenda offers a comprehensive strategy for tax reform, its passage into law may face significant challenges given the current political landscape. Nevertheless, the president's State of the Union address serves as an opportunity to engage with voters and present his vision for economic recovery and shared prosperity.