The Biden White House wants voters to know its differences with Republicans over taxes, with a top aide making the case for higher rates on corporations and the ultra-wealthy.
Lael Brainard, director of the White House National Economic Council, will deliver remarks at the Brookings Institution on Friday that get at the major tax challenge for whomever wins the November presidential election.
Many of the 2017 income tax cuts signed into law by then-President Donald Trump are set to expire after next year. If all the tax cuts expire, then the vast majority of U.S. households would see their payments to the IRS increase. But if all the tax cuts are extended, then another $4.6 trillion would be added to the national debt over the next decade, according to the Congressional Budget Office.
Trump, a Republican, says tax hikes would destroy the U.S. economy. But President Joe Biden, a Democrat, wants to extend the middle-class tax cuts while raising taxes on highly profitable companies and the richest sliver of Americans.
“The expiration of Trump’s 2017 tax package next year will put tax fairness front and center,” Brainard plans to say, according to draft remarks obtained by The Associated Press. “The president is honoring his ironclad commitment to not raise taxes on anyone making less than $400,000 and will cut taxes further for workers and families, paid for by asking corporations and those at the top to contribute more.”
In the draft of her speech, Brainard says the 2017 tax cuts failed to deliver the growth promised by Republicans. She argues that they let wealthy households play by their own special set of rules that let them pay lower rates than many people with middle-class earnings.
Her speech uses variations on the word “fair” 16 times in what is a clear attempt to raise awareness of the issue, as many voters are more focused on inflation, immigration and foreign policy as major policy challenges for the country.
Trump has argued that the expiration of all of his tax cuts would cause mass layoffs that could permanently cripple the economy. His remarks reflect a belief that growth stems from the choices made by companies and wealthy investors, whereas Biden is betting on growth flowing out of spending by middle-class households that feel more financially secure.
Trump’s 2017 overhaul cut the corporate tax rate to 21%, intending to make it more competitive internationally. The law also temporarily cut the income taxes paid by most U.S. households, in part by trimming marginal tax rates and increasing the standard deduction.