Biden Advocates for Increased Corporate Tax, Highlights Robust Economy in Major Address

In his State of the Union address, US President Joe Biden emphasized the need for increased corporate taxes, underscoring his commitment to reducing medication costs and enhancing housing affordability. This move comes as part of his efforts to address public concerns about the economy while also positioning himself for re-election later this year.

At 81, Biden used the annual speech to connect with voters’ anxieties, while claiming credit for the revival of the world’s largest economy. Despite dodging recession predictions last year and experiencing a cooldown in inflation, Biden faces challenges in persuading the electorate on economic matters.

Biden’s address at the US Capitol to both the House and Senate highlighted his inheritance of an economy on the verge of collapse, yet he now describes it as the “envy of the world.” He noted significant achievements under his administration, including the creation of 15 million new jobs in three years and unemployment rates reaching 50-year lows.

His speech also took subtle jabs at Donald Trump, contrasting the current administration’s success story with the previous one’s policies. However, for Biden’s economic plans to fully materialize, the Democrats need to secure substantial majorities in both Congressional chambers in the upcoming November elections, a prospect currently appearing uncertain.

Among Biden’s key economic propositions is raising the corporate minimum tax to at least 21 percent, ensuring large corporations pay their fair share. This proposal is part of a larger strategy to decrease the federal deficit by trillions and is expected to be complemented by tax reductions for the lower-income demographic.

Additionally, Biden is advocating for a 25 percent minimum tax on billionaires, criticizing the tax cuts during Trump’s tenure that he argues predominantly benefited the wealthy. He also highlighted efforts to allow Medicare to negotiate reduced prices for essential medications, proposing to extend this power to cover 500 drugs over the next decade, thereby saving taxpayer money.

In international relations, particularly concerning China, Biden pointed out his administration’s steps to restrict exports of advanced technology. He emphasized that, while he doesn’t seek conflict with the world’s second-largest economy, the US is in a “stronger position” to compete with China than before.