When the President addressed the great nation last week, one thing that was brought up several times was higher taxes on big corporations and wealthy individuals. There were several instances when the president urged Congress to approve measures that would ultimately raise taxes for certain taxpayers and businesses. Lawmakers that disagreed were not afraid to voice their opinion, as some congress members openly booed and voiced their displeasure.
“Pay Your Fair Share”
“We pay for these investments in our future by finally making the wealthiest and the biggest corporations begin to pay their fair share,” said Biden. “I’m a capitalist, but just pay your fair share. And I think a lot of you at home agree with me that our present tax system is simply unfair. The idea that in 2020, 55 of the biggest companies in America made $40 billion in profits and paid zero in federal income taxes? That’s simply not fair. But now, because of the law I signed, billion-dollar companies have to pay a minimum of 15%. Just 15%. That’s less than a nurse pays.”
Urging Congress
The president also said, “Let’s finish the job. Reward work, not just wealth. Pass my proposal for a billionaire minimum tax because no billionaire should pay a lower tax rate than a school teacher to a firefighter”
Something else the President called for was higher taxes on oil companies and other corporations, as he mentioned the 1% tax on corporate buybacks that was part of the Inflation Reduction Act.
“You may have noticed that Big Oil just reported record profits,” he said. “Last year, they made $200 billion amid a global energy crisis. It’s outrageous. They invested too little of that profit to increase domestic production and keep gas prices down. Instead, they used those record profits to buy back their stock, rewarding their CEOs and shareholders. Corporations ought to do the right thing. That’s why I propose that we quadruple the tax on corporate stock buybacks to encourage long-term investments instead. They will still make a considerable profit.”
Defends IRS Funding
The President was quick to come to the defense of the $80 billion in funding that the IRS will receive over the next decade. Biden said that much of this funding will go towards hiring new employees to help with taxpayer services, improve technology, and the hiring of auditors. “Let’s finish the job and close the loopholes that allow the very wealthy to avoid paying their taxes,” said Biden. “Instead of cutting the number of audits of wealthy taxpayers, I signed a law that will reduce the deficit by $114 billion by cracking down on wealthy tax cheats. That’s being fiscally responsible.”
Wrap Up
Like many State of the Union Addresses, the American people are left with a lot of unanswered questions. The back-and-forth exchanges between the president and displeased congress members show that communication is something our government struggles with. As far as the initiatives the President said he will complete, only time will tell if these tasks will be completed.