Speaker 1: Bloomberg first reported, and Axios was able to independently confirmed that President Joe
Biden in his new White House budget is going to be proposing a number of new taxes. I'm going to tell
you what they are, and then we will discuss whether they are likely to become a reality,
Axios writes. The new budget request to Congress, set to be released Thursday includes a 25% minimum
tax on the richest 0.01% of Americans. This is a billionaire tax. It would also increase the
top tax rate for those Americans making $400,000 a year, up to 39.6% from 37%. That was the rate
prior to Trump's 27 tax bill. 2017 tax bill. It would go back to that prior rate. It would raise
income levies on corporations and billionaires, and it would set the corporate tax rate at 28%,
still below the 35% rate that was in place prior to Trump's 2017 tax law. That is not the only
thing that Joe Biden plans to do. He also plans an increased Medicare tax. Remember when we talk
about Social Security and Medicare? Sometimes people forget about the Medicare piece. What
Joe Biden wants to do is increase the Medicare tax rate from 3.8 to 5% on income, exceeding
$400,000 per year, and it would apply to both salaries as well as capital gains. It would
likely increase tax revenues by over $117 billion over ten years, so about 11.7 billion a year,
according to prior estimates from last month by the Tax Policy Center. So a couple of different
things. Is Joe Biden sticking to his promise not to increase taxes on people making under
$400,000 a year by all reasonable assessments of these proposals? The answer is yes. Joe Biden is
not raising taxes on anyone making under 400 k. Secondly, is this likely to pass? And the answer
is no. I made this analysis when Donald Trump would release his budgets and it is the same
analysis when Joe Biden releases his budget. White House budgets are political documents.
Political documents. You have to get this through the House of Representatives, currently controlled
by Republicans in order to make it a reality. And so this is a sort of wish list. This is what you
could say Joe Biden would do if he could wave a magic wand. And to be totally honest. Sometimes
presidents include things in White House budgets that they wouldn't actually do if they had full
power to do it. They include it in the budget as a signal, a virtue signal. We have to admit,
knowing that it's not going to pass. Which category are these proposals under? Well,
we don't know because we know that it is a White House budget, which is a political document. So it
will be interesting to see, however, are there negotiations to be had where Republicans who
control the House would be willing to come to the table on some of these proposals from Joe
Biden in exchange for what? Well, we don't really know. In exchange for what? We will
be watching it. But so far, these proposals, as unlikely as they are to become the law, are
keeping Joe Biden adhered to the promise he made about Americans making under $400,000 per year.