President Biden to Outline Economic Plans and Tax Reform in State of the Union Address

On Thursday 7 March, President Joe Biden delivered his State of the Union address, focusing on his economic record and outlining plans to reshape the tax system and reduce the deficit.

Economic Populism

President Biden emphasized his commitment to economic populism, with a focus on regulatory and antitrust policies in anticipation of a potential rematch against former President Donald Trump in November.

Tax System Overhaul

Biden proposed a corporate tax rate increase to 28%, aiming to reverse Trump's reduction from 35% to 21% under the 2017 tax law. Additionally, he plans to raise the corporate minimum tax from 15% to 21% in the upcoming budget, with the goal of reducing the deficit by $3 trillion over the next decade.

Consumer Protection

Biden highlighted measures to address prescription drug costs and combat what his administration termed as "shrinkflation," wherein product sizes decrease while prices remain constant or rise. He also called for lower prices in grocery stores and crackdown on junk fees.

Housing Affordability

During his address, Biden proposed various initiatives to expand housing supply and lower costs for both renters and homeowners. Some of these proposals will necessitate congressional action.

Impact on Workers

Shawn Fain, President of the United Auto Workers, was among the guests in the First Lady's viewing box during the address. President Biden previously stood in solidarity with Fain and UAW workers during a strike against automakers, marking the first instance of a sitting president joining a picket line.