President Joe Biden is trying to appeal to voters who don’t think the elite billionaires pay their fair share.
Biden intends to raise taxes on the wealthy and focus on private jets to address criticisms of his economic policies and connect with voters.
The proposal is to ensure that billionaires pay at least 25% in federal taxes on their income, with a particular emphasis on people such as Jeff Bezos and Elon Musk. In 2024, Biden’s rival, Donald Trump, who uses his private jet, Trump Force One, will be affected by his plans.
The president is courting working people and middle-class families, reminiscent of his upbringing in Scranton. The substantial tax increases are intended to lower the U.S. deficit and enhance Biden’s favorability leading to the November election. Recent polls show Trump leading by a narrow margin with eight months remaining until Election Day.
Voters are unhappy with how Biden manages the economy, as Trump continues to criticize Biden for the high inflation causing food and fuel prices to rise. The upcoming changes will affect a few of his followers, such as John Kerry’s ex-environment adviser, Taylor Swift, and Leonardo DiCaprio.
Biden intends to use some of the revenue to support the expansion of the Earned Income Tax Credit and Child Tax Credit, which will help lower-income families. He aims to ensure that health insurance premiums remain low for people covered by the 2010 Affordable Care Act. The increased tax rate will help decrease the deficit by $3 trillion over the next decade.
Biden’s tax proposals are unlikely to be approved, as many are facing challenges. The corporate minimum tax is set to increase to 28% from the current 21%, along with stricter limits on business income deductions for executive pay and a focus on business income deductions for the use of corporate jets.
The IRS deals with limited resources, outdated IT systems, poor customer service, and a reduced enforcement team. In 2022, President Biden and congressional Democrats allocated $80 billion to address these issues, while Republican legislators have been trying to reclaim the funds. The GOP’s primary focus has been to cut funding for the tax enforcement agency, leading to disagreements in legislative fights.
