Feb 15 Key Takeaways From President Biden’s State of the Union Address

In President Biden’s recent State of the Union address, there were some key points that we would like to highlight that may impact you or your business.

Corporate Taxes

At the end of 2020, 55 of the largest corporations with $40 billion in profits paid zero in federal income taxes. The Biden Administration has signed a law with a minimum corporate income tax of 15% for all companies with more than one billion of book net income to ensure corporate taxpayers pay their fair share of income taxes. In addition, the Biden Administration has proposed to quadruple the current tax of 1% on corporate stock buybacks.

Individual Income Taxes

The Biden Adminstration has proposed a billionaire minimum income tax to ensure that wealthy taxpayers are not paying less than the average American.  Those taxpayers making less than $400,000 will not see any change in their current income taxes.

Families and the Child Tax Credit

To assist families, the Biden Administration has proposed to restore the Child Tax Credit as a means to cut child poverty.

Another goal for the Biden Administration in 2023 is to provide families with access to affordable and quality housing.

Construction Materials

The Biden Administration announced a new standard that all federal infrastructure projects be sourced with materials made in the US.

Those materials would include but not be limited to the following:

• Lumber
• Glass
• Drywall
• Fiber-optic cables

Prescription Drug Costs and Medicare

The United States pays more for prescription drugs than any other developed country. The Biden Administration proposes to lower the price of insulin from the current monthly cost of $400-$500 that is being charged by pharmaceutical companies and prescription benefit providers to a lower more affordable amount for this life-saving drug for all Americans.

For seniors on Medicare, the cost of insulin would be capped at $35 with the goal to establish this proposed cap as an industry standard.

Junk Fee Prevention Act

The proposed legislation would  seek to reduce 5 major types of fees charged to consumers including:

• Airline booking fees
• Concert ticket service fees
• Early termination fees for TV, phone, and internet services
• Resort fees at hotels
• Excessive late fees on credit cards

Sax will continue to update you as new information emerges.  For questions regarding any of these points, feel free to contact a member of our tax team here.