Biden declares war on billionaires! President will demand super rich pay more tax - and call for increased corporate levies in his second State of the Union address today
President Joe Biden will call for billionaires to pay more tax during his State of the Union address and demand that businesses pay a quadrupled levy on stock buybacks - two proposals that are unlikely to be passed by a divided Congress.
In his second State of the Union, and his first to the newly-split legislature, Biden intends to emphasize the lowest unemployment in 50 years, post-pandemic recovery, and the passing of bills to tackle climate change and improve infrastructure.
He also intends to renew calls to make the wealthiest pay more tax.
'President Biden is a capitalist and believes that anyone should be able to become a millionaire or a billionaire. He also believes that it is wrong for America to have a tax code that results in America's wealthiest households paying a lower tax rate than working families,' the White House said on Monday, in a preview of the economic plans to be outlined in the speech.
Joe Biden is seen on March 1, 2022, delivering last year's State of the Union
Biden will highlight the lowest unemployment rate since the 1970s
The administration said that most billionaires pay a tax rate of eight percent - lower than the vast majority of Americans, thanks to clever use of legal loopholes.
'This minimum tax would make sure that the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters,' the White House said.
And he will try to convince Americans to support his plan to increase corporate levies.
The Inflation Reduction Act, which Biden signed into law in August, imposed a 1 percent tax on buybacks - a move whereby a public company uses cash to buy shares of its own stock on the open market.
When a company buys its own shares, it's helping to increase the price for its stock by boosting demand, thereby creating value for all shareholders.
Biden would like to raise the levy on buybacks.
Biden is seen in March 2022, delivering his first full State of the Union
Biden is seen on Monday outside the White House, as he and his team finalize the text of Tuesday's speech
'Stock buybacks enable corporations to funnel tax-advantaged payouts to wealthy and foreign investors, instead of paying dividends that shareholders are required to pay taxes on,' the White House factsheet stated.
'Last year, oil and gas companies made record profits and invested very little in domestic production and to keep gas prices down—instead they bought their own stock, giving all that profit to their CEOs and shareholders.'
Biden will argue that his plan will encourage businesses 'to invest in their growth and productivity as opposed to paying out corporate executives or funneling tax-preferred profits to foreign shareholders.'
Neither plan is likely to gain any traction in the Republican-controlled House.
Biden on Monday tweeted a photo of a binder containing his notes for the speech, captioned: 'Getting ready.'
He followed up with a series of tweets giving hints of the subjects he intends to cover.
'For too long, working pregnant women and new moms have been denied basic dignities – like bathroom breaks or taking a seat – by their employers. Can you imagine?' he tweeted.
'I promised to address this – and I kept that promise by signing the Pregnant Workers Fairness Act into law.'
Biden continued: 'The last time the unemployment rate was this low, we had yet to set foot on the moon. Think about that.
'Together, we're building an America where everyone has a fair shot.'
He added: 'Two years after taking office, we've come a long way.
'We've more than recovered all the jobs lost in the pandemic, and the number of Americans on unemployment is near the lowest it's been in decades.'
Republican politicians, however, told DailyMail.com that they want to see the commander-in-chief pledge to rein in federal spending and be 'truthful' with Americans about the current threats to U.S. homeland security.
Biden's address is already likely to be overshadowed by the recent diplomatic incident caused by a suspected Chinese 'spy balloon' floating over multiple U.S. states at a low enough altitude to be seen with the naked eye - alarming millions across the country.
Multiple Republicans told DailyMail.com that he will need to address the drama.
Among the House Republicans who shared what they want to hear from Biden are Armed Services Committee member and ex-Green Beret Mike Waltz (left) and Republican Study Committee Chairman Kevin Hern (right)
South Dakota Rep. Dusty Johnson, a member of the Select Committee on China, said Americans deserve answers for what occurred with the suspected Chinese spy device last week
China hawks such as Florida congressman Mike Waltz and Dusty Johnson of South Dakota are demanding that Biden give Americans answers on what happened regarding China's suspected surveillance device.
Waltz also called on Biden to broach the crisis at the southern border - an issue that's been an albatross for the White House for much of his term.
'This Chinese spy balloon was a wake-up call and I believe a Sputnik moment for the country,' Waltz told DailyMail.com, referencing the infamous Soviet satellite that epitomized the 20th Century space race.
'President Biden needs to be honest with the American people that the Chinese Communist Party is in a Cold War with the us and this needs to be made a priority for our country.'
Johnson, a member of the House Select Committee on China, shared a similar call for accountability on Tuesday night.
'President Biden should absolutely use this moment to express to the American people what in the world happened,' he told DailyMail.com.
Officials said the first spy balloon that traveled across the US fell six miles off the coast of South Carolina in waters about 47 feet deep. They noted that a proper salvage vessel won't be on the scene for days as the race is on to secure the wreckage
Waltz also said Biden 'needs to be truthful about the threat of our open southern border.'
Biden made his first visit to the border as president just last month, amid growing pressure from federal, state and local authorities.
He did not appear to meet with any migrants during the brief trip.
Kevin Hern, an Oklahoma congressman and chair of the Republican Study Committee, pointed out that the president's speech is coming one day after he missed a statutory deadline for submitting a budget proposal to Congress for the next fiscal year.
'February 6th is the deadline for Biden's budget request - and he's coming to speak to Congress the very next day. Without a budget, what does he have to present to us?' he asked.
'Americans made it clear that they're sick of the spending; they know what the Biden Administration refuses to admit, that every dollar Biden spends comes from the American taxpayers.
'Anything short of a full commitment to cut spending and balance the budget is a failure of leadership from this president.'
The White House and House Republicans are gridlocked on how to move forward raising the debt limit in order to avoid a massive national default.
Conservatives have made clear that they won't allow a clean increase without offsetting it with future spending cuts.
But Democrats are standing firm on the debt ceiling being an 'obligation' of the U.S. government rather than a bargaining point.
At the RSC's regular luncheon last week, Hern unveiled a set of proposals to cut back on discretionary spending and advancing 'targeted, paid-for, pro-growth tax policies' among others.
The set of proposals, obtained by DailyMail.com, also includes calls to enact 'inflation-busting reforms to increase domestic energy capacity and reduce associated regulatory and permitting barriers.'
Hern's plan would also streamline 'duplicative programs' and attempt to avert another such crisis by codifying 'procedures to ensure the federal government honors certain critical obligations' like debt payments, veterans' care, social security and Medicare.
