​ Joe Biden will target super-rich and corporate America in his State of the Union address tonight with sweeping tax increases that will include an increase in the minimum corporate tax from 21% to 25% and a minimum tax of 25% for billionaires.

President Joe Biden is going after those he believes aren’t paying their fair share, like Elon Musk and Jeff Bezos, as his office plans to raise taxes on corporations and billionaires.

The elderly Democrat, 81, will make the announcement during the annual State of the Union address Thursday night. The corporate tax will increase from 21 percent to 25 percent and a 25 percent tax on those with wealth over $100 million.

White House officials said Biden would preview steps that will be part of a fiscal 2025 budget proposal released next week that aims to reduce the federal deficit by $3 trillion while also reducing the taxes for low-income Americans.

Most of Biden’s tax proposals have little chance of being enacted unless Democrats win solid majorities in both chambers of Congress in November, a sweep that polls suggest is unlikely.

The tax plans are expected to form a central part of Biden’s re-election campaign, in stark contrast to presumptive Republican nominee Donald Trump, whose 2017 ‘Tax Cuts and Jobs Act’ cut taxes for corporations and the wealthy. .

“Congressional Republicans want to further cut taxes for the rich and large corporations, while adding more than $3 trillion to the debt,” said Lael Brainard, director of the White House National Economic Council.

“President Biden has made it clear which side he is on.”

The new taxes will likely hit the richest people in the US, including Amazon founder Jeff Bezos.

Billionaire Elon Musk has long criticized President Joe Biden

The proposals include Biden’s earlier calls to raise the corporate tax rate to 28 percent from the current 21 percent, taking back half of the Republicans’ 2017 cut.

Biden now also wants to raise to 21 percent a 15 percent minimum corporate tax on companies reporting more than $1 billion in profits that he secured as part of the 2022 clean energy legislation.

Biden will also ask Congress to pass much stricter limits on business income deductions for executive compensation, capping them at $1 million for any employee.

Current law already prohibits deductions in the compensation of CEOs, CFOs and other key positions. White House officials said the new proposal would cover all employees with salaries above $1 million and raise more than $250 billion in new corporate tax revenue over 10 years.

Biden will also pursue deductions from business income for the use of corporate aircraft, an area that is already the subject of audits by the Internal Revenue Service.

This includes extending the depreciation period for corporate jets to seven years, the same as commercial jets, from the current five years, reducing annual deductions, an administration official said.

Biden will renew his ‘trillion-dollar tax’ proposal, which is actually well below that level. He imposes a minimum 25 percent tax on the income of those Americans with wealth over $100 million.

The average American worker will pay about 25 percent in 2022, the OECD reports. A White House investigation found that the richest people paid about 8 percent between 2010 and 2018.

Biden will pledge to extend Trump-era tax cuts for those earning less than $400,000, call for reinstating a COVID-era expansion of the Child Tax Credit that paid eligible families up to $3,600 a year per child, and increase a tax credit for low-wage earners. workers.

As consumers continue to struggle with high prices, Biden will also outline steps his administration is taking to reduce “corporate scams,” including additional “junk” fees, price gouging and reducing package sizes to conceal price increases.

The so-called ‘shrinkflation’ was lamented on Monday by the Sesame Street muppet, Cookie Monster, in a widely distributed publication on X’s social networks.

Following a move this week to cap credit card late payment fees at $8, Biden will also call for a crackdown on “exploitative” practices with brand-name credit cards, including the devaluation of airline miles and points.