PRESIDENT BIDEN’S 2025 BUDGET
Tax Fairness and Fiscal Responsibility
President Biden’s 2025 budget builds on the progress made by the Administration and Congressional
Democrats over the last three years to ensure those with the most among us pay their fair share in taxes.
The budget not only improves tax equity, it also will raise revenue that will allow for investments in families
and our communities, all while lowering the deficit and maintaining stable economic growth. This is a stark
contrast with House Republicans’ 2025 budget, which instead of improving equality and being fiscally
responsible would explode the deficit and give handouts to the rich.
ENDING PREFERENTIAL TAX TREATMENT FOR THE WEALTHY
The President’s budget ensures that billionaires do not get special tax treatment and pay lower tax rates than
hard-working American families. Specifically, it imposes a minimum tax on the wealthiest earners, meaning that
billionaires must pay at least 25 percent in taxes of their full income, including unrealized appreciation. It
applies to those in the top 0.01 percent of earners (those worth over $100 million), and most of the revenue
comes from households worth more than $1 billion. This proposal alone raises $503 billion in revenue over the
decade. The budget also asks the highest earners, or those earning more than $400,000 a year, to pay a top
marginal tax rate of 39.6 percent – a policy that raises $246 billion over the decade and undoes one of the
massive tax cuts for the wealthy in the 2017 tax law. The budget also taxes capital gains at the same rate as
income for those making over $1 million a year while closing loopholes like the carried interest loophole, which
allows wealthy investment fund managers to pay low tax rates. By closing those loopholes, the budget raises
$63 billion over the decade.
MAKING CORPORATIONS PAY THEIR FAIR SHARE
The budget requires corporations to contribute their fair share in taxes. For example, the budget increases the
corporate tax rate to 28 percent, which will undo some of the massive corporate tax giveaways that were part
of the 2017 tax law but remains below the 35 percent corporate tax rate that existed before 2017. This policy
alone raises $1.35 trillion over the decade. The budget also raises $137 billion by increasing the corporate
minimum tax rates on corporations with billions of dollars in earnings from 15 to 21 percent, building on the
earlier minimum tax requirement passed as part of the Inflation Reduction Act (IRA). It also quadruples the
stock buyback tax, incentivizing corporations to invest in their businesses instead of sending excess profits to
shareholders. Collectively, these and other proposals that ask big corporations to contribute more raise $2.16
trillion in revenue over the decade.
REFORMING CLIMATE AND INTERNATIONAL TAXATION
To ensure equity across the international tax system, the budget builds on an earlier deal made between the
Administration and 130 other nations which creates a global tax framework that ends the race to the bottom in
international taxation. These policies reduce incentives to hide profit in low-tax jurisdictions, stop corporate tax
inversions, and raise the tax rate on multinational foreign earnings from 10.5 to 21 percent. In total, these
reforms raise $122 billion over the decade.
The plan also eliminates tax preferences for fossil fuels, which raise $35 billion over the decade. In addition, it
extends and enhances incentives for clean energy, energy efficiency, and electricity transmission, and ensures
polluting industries pay for environmental cleanup by restoring payments into the Superfund Trust Fund. Those
modifications to energy tax policy raise $45 billion over the decade.