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All rights reserved. <a href="https://help.foxbusiness.com/hc/en-us/sections/4405278462107-FAQ">FAQ</a> - <a href="/privacy-policy">New Privacy Policy</a><br>Committee for a Responsible Federal Budget President Maya MacGuineas explains the 'three basic ways' Biden could reduce national debt.<br>President Biden has pitched an array of <a href="https://foxbusiness.com/category/taxes" target="_blank" rel="noopener"><u>tax hikes</u></a> targeting corporations and wealthy Americans, but the steeper levies could weigh on the already-fragile U.S. economy, according to the Tax Foundation. <br>Findings from the Tax Foundation, a group that advocates for lower taxes, found the higher taxes laid out in <a href="https://foxbusiness.com/category/joe-biden" target="_blank" rel="noopener">Biden's sweeping budget</a> blueprint for federal spending in fiscal 2025 would reduce economic output by 2.2% in the long run, slash wages by 1.6% and kill about 788,000 full-time equivalent jobs.<br>The policies outlined in the plan would "make the tax code more complicated, unstable, and anti-growth, while also expanding the amount of spending in the tax code for a variety of policy goals not related to revenue collection," the report said.<br>As part of the proposal, Biden called for a 25% minimum tax rate on households worth more than $100 million, raising the capital-gains tax rate, quadrupling the corporate stock buyback tax to 4%, raising the corporate tax rate to 28%, increasing the Medicare tax paid by wealthy Americans, implementing a global minimum tax on multinational corporations and closing the carried interest loophole used by private equity and hedge fund managers.<br><a href="https://foxbusiness.com/politics/biden-targets-ultra-rich-corporations-latest-tax-proposal-heres-whats-in-it" target="_blank" rel="noopener"><strong>BIDEN TARGETS ULTRA-RICH, CORPORATIONS IN LATEST TAX PROPOSAL: HERE'S WHAT'S IN IT</strong></a><br><span>President Biden delivers the State of the Union address on March 7.</span><span> (Shawn Thew/EPA/Bloomberg via Getty Images / Getty Images)</span><br>Altogether, the tax increases would reduce the federal deficit by about $3 trillion. Money from the newly generated revenue would also help to pay for expensive new programs floated by the president, including a monthly tax credit to help some homeowners offset steep mortgage payments, subsidies for child care and lower prescription drugs.<br>In the case of the capital gains tax, the proposed changes would "push the United States beyond international norms," according to the Tax Foundation. <br><a href="https://foxbusiness.com/money/your-tax-bill-could-be-much-lower-year-heres-why" target="_blank" rel="noopener"><strong>YOUR TAX BILL COULD BE MUCH LOWER THIS YEAR - HERE'S WHY</strong></a><br>By taxing wealthy Americans' capital gains as ordinary income, Biden would ultimately raise the top tax rate paid on capital gains to 49.9% — the steepest level in the 38-member Organization for Economic Co-operation and Development.<br><span>The Internal Revenue Service building in Washington, D.C., on April 17, 2023. </span><span> (Stefani Reynolds/AFP via Getty Images / Getty Images)</span><br>But the Tax Foundation analysis labeled the corporate income tax proposal the "most harmful" to economic growth. The budget proposal would lift the corporate tax rate to 28% from 21%, rolling back a key part of former President Donald Trump's 2017 tax law. The measure also calls for increasing the taxes that U.S. companies owe on their foreign earnings to 21% — nearly double the current 10.5% rate.<br><a href="https://www.foxbusiness.com/apps-products" target="_blank" rel="noopener"><strong><u>GET FOX BUSINESS ON THE GO BY CLICKING HERE</u></strong></a><br>Higher taxes on corporations are the "largest driver of the negative" economic effects and alone would trim the nation's GDP by 0.9%, wages by 0.8% and full-time equivalent jobs by 192,000, the study shows. <br><span>A worker operates a metal cutting machine at Gent Machine Co.'s factory in Cleveland on May 26, 2021.</span><span> (Reuters/Timothy Aeppel / Reuters Photos)</span><br>"Our economic estimates likely understate the effects of the budget since they exclude two novel and highly uncertain yet large tax increases on high earners and multinational corporations, namely a new minimum tax on unrealized capital gains and an undertaxed profits rule (UTPR) consistent with the OECD/G20 global minimum tax model rules," the report said.<br>Still, the proposals are unlikely to garner <a href="https://foxbusiness.com/category/congress" target="_blank" rel="noopener"><u>support in a deeply divided Congress</u></a>, and face almost certain rejection from Republicans who control the House.<br>Get a brief on the top business stories of the week, plus CEO interviews, market updates, tech and money news that matters to you.<br>We've added you to our mailing list.<br>By clicking subscribe, you agree to the Fox News <a href="https://www.foxnews.com/privacy-policy" target="_blank" rel="noopener">Privacy Policy</a> and <a href="https://www.foxnews.com/terms-of-use" target="_blank" rel="noopener">Terms of Use</a>, and agree to receive content and promotional communications from Fox News. 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