Democratic presidential candidate Joe Biden announced a plan Thursday to impose nearly $1 trillion in new taxes on corporations and more than $3 trillion overall. His plan reflects a theme he has been advancing for weeks: that big business has broken its "basic bargain" with middle class Americans.
“There used to be a basic bargain in America: If you contribute to the well-being of the outfit you work with, you got to share in the benefits. Well, that bargain has been broken. Corporate America has been doing incredibly well for the last 15 years."
Biden's plan would raise the corporate tax rate from 21% to 28%. Additionally, his plan would raise the top individual tax rate to nearly 40%, impose new taxes on foreign income for wealthy individuals and companies, and close corporate tax loopholes.
The former vice president aims to use the additional tax dollars to fund his proposed initiatives on health care, infrastructure, education and climate change.
Biden's proposed tax increases are more moderate than his Democratic rivals'. South Bend Mayor Pete Buttigieg proposes raising the corporate tax rate to 35%, 7 points higher than Biden. Sens. Bernie Sanders and Elizabeth Warren call for sweeping new taxes to finance Medicare for All, highlighted by Warren's 2% wealth tax on billionaires.
And yet, Biden's tax increases are double what was proposed by the 2016 Democratic nominee, Hillary Clinton.
Additional reporting from Newsy affiliate CNN.