Former Vice President Biden has vowed to raise the corporate tax rate from 21% to 28%.
During a fundraising conference call, Biden said “I’m going to get rid of the bulk of Trump’s $2 trillion tax cut and a lot of you may not like that but I’m going to close loopholes like capital gains and stepped-up basis.”
Per FoxBusiness, the Trump administration permanently slashed the corporate tax rate from 35 percent to 21 percent with the passage of the 2017 Tax Cuts and Jobs Act.
Biden also floated the possibility of capping deductions — Trump substantially increased the size of the standard tax deduction in 2017 — and sanctioning companies for tax avoidance.
Biden’s comments came after he was questioned by Vincent Mai, the founder and chairman of Cranemere, about how he would balance short-term needs in addressing the worst economic downturn since the Great Depression with long-term investments the nation needs to make — and how he would pay for it.
The recovery from the pandemic and subsequent shutdown could be used as an opportunity to build a “stronger, more inclusive middle class,” he said, in part by investing “record sums of money” in clean energy innovation and infrastructure.
But Biden lambasted Trump’s “irresponsible, sugar-high tax cuts,” accusing the president of making it “much harder to foot the bill” of the nation’s recovery.
Meanwhile, last month CNBC took a look at how Biden’s tax plan could raise middle class taxes.