Biden Proposes Wealth Tax Increase... "Tax Revenue Decreased by 805 Trillion Won Over 4 Years in Power"

NYT "Amazing Fact"

Ahead of the U.S. presidential election, as part of efforts to win public support, President Joe Biden has proposed a sweeping 'wealth tax increase' plan, but it has been found that tax revenues have decreased during his four years in office. The substantial benefits given to eco-friendly sectors such as electric vehicles and solar power, as well as the semiconductor industry, have offset the income.

On the 26th (local time), The New York Times (NYT), citing an analysis by the Urban-Brookings Tax Policy Center, reported, "The tax cuts President Biden implemented for individuals and corporations have exceeded the amount of tax increases," adding, "Given that President Biden is advocating for tax hikes on the wealthy and corporations in his reelection campaign, this fact may not be surprising."

According to the analysis, tax revenues are estimated to have decreased by approximately $600 billion (805.2 trillion KRW) over the three years of the Biden administration. This reflects changes in taxes during Biden's term, including direct benefits to individuals and corporations through the tax code. The impact of inflation and certain regulations was not evaluated.

The Biden administration's tax cuts were driven by incentives for eco-friendly companies such as solar panels and wind turbines under the Inflation Reduction Act (IRA), electric vehicle purchase subsidies, and tax reduction benefits under the CHIPS Act. The child tax credit under the 'American Rescue Plan' announced in 2021 also had an effect. Benjamin R. Page, senior researcher at the Urban-Brookings Tax Policy Center, stated, "Based on these figures, it can be concluded that the Biden administration's tax policy was not a radical tax increase program."

The Biden administration has pursued policies requiring the wealthy and large corporations to pay more taxes. Representative examples include imposing a 1% excise tax on companies repurchasing more than $1 million of their own stock annually, and requiring large corporations eligible for deductions to pay a minimum of 15% federal income tax. The White House, in an email from a spokesperson, stated, "We are proud to have cracked down on tax evasion by the wealthy and ensured that large corporations pay their fair share, while cutting taxes for middle-class and working families."

This stance is said to be strengthening ahead of the November election. In his State of the Union address on the 7th, President Biden expressed his intention to push for high-intensity wealth tax increases, including raising the corporate minimum tax rate from 15% to 21% and imposing a minimum 25% income tax rate on top earners. Biden's plan is to "make the wealthy and large corporations pay their fair share." U.S. media report that if Biden's wealth tax plan is implemented, it could raise an additional $4.9 trillion in taxes over ten years.

On the other hand, the Republican Party has criticized Biden's tax reform plan. Jodey C. Arrington, a Republican congressman from Texas and chairman of the Budget Committee, said at a hearing on the 21st, "President Biden believes that imposing many taxes is the answer to the problems facing America."

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