On 11 March, President Biden sent Congress a fiscal year (FY) 2025 budget that proposes to increase taxes by nearly $5 trillion for corporations and for individuals with incomes above $400,000. Many of the president’s tax proposals -- including a proposal to increase the corporate tax rate to 28% and impose a 25% minimum tax on certain high-income individuals – were included in President Biden’s previous budgets. New tax proposals in the FY 2025 budget include measures to increase the recently enacted corporate alternative minimum tax rate from 15% to 21% and to deny business deductions for employee compensation above $1 million.
President Biden’s FY 2025 budget proposals to increase taxes will not be considered by the current Congress in which Republicans control the House, but do provide a marker for his tax policy priorities if he is re-elected.
Action to consider
Business leaders should begin communicating now with policymakers on the potential positive and negative effects of President Biden’s tax proposals and other Administration economic policy proposals on their employees, job creation, and investments in the United States.