1
To: Interested Parties
From: Lael Brainard
Re: The High-Stakes Tax Debate in 2025
Date: June 13, 2024
The stakes of the coming tax debate over the expiring Trump tax cuts are clear: While President Biden
plans to pay for extending tax cuts for hardworking Americans by making sure the wealthiest and big
corporations pay their fair share, the Congressional Republican plan would extend tax cuts for the ultra-
wealthy and expand tax cuts for big corporations by making hardworking Americans pay—whether by
taxing household purchases, severely cutting Social Security and other programs hardworking Americans
count on, or ballooning our national debt.
Congressional Republicans are clear that their top priority for the first 100 days of 2025 is to secure a tax
cut skewed to the ultra-wealthy while making hardworking Americans pay the price—and new reporting
this week suggests they want to expand even further on the Trump corporate tax giveaways.
Congressional Republicans should be transparent about how they want working families to pick up the $5
trillion tab for their tax cuts skewed to the ultra-wealthy and their additional corporate tax cuts. Their
record shows they will cover the cost through some combination of taxing everyday household purchases,
making deep cuts to Social Security and other programs millions of Americans count on, or ballooning
the deficit, as they did in 2017 when they had unified control of government. One way or another, the
American people will pay the price.
President Biden’s Approach Puts American Workers and Families First
The President’s approach to the 2025 tax debate will be guided by his core belief that our tax system
should help hardworking Americans and the middle-class, not the ultra-wealthy. The tax debate should
advance five key principles:
1. Reward work, not wealth. The President has pledged that the over 95% of American households
that earn less than $400,000 will not pay more in taxes. He has also proposed tax cuts to help millions
invest in their children, make work pay, and secure health insurance.
2. Raise revenue to honor the President’s commitment to seniors and fiscal responsibility. That
means we cannot give the wealthiest Americans another tax cut, so we must let the Trump tax cuts
expire for those making more than $400,000.
3. Raise revenue by asking corporations that are making record profits to pay their fair share. It
doesn’t make sense that the corporate tax share is low at a time when corporate profits are at record
highs. Given that we ask far less of corporations than other large countries, and the investment
response to the Trump corporate tax cut was lackluster, it appears corporations can afford to pay their
fair share without hindering economic growth.
4. Ensure wealthy taxpayers pay what they owe and play by the same rules. It is important to
maintain President Biden’s investment in the IRS so that it can effectively address tax evasion by the
wealthy and large businesses, while providing a better tax filing experience.
5. Avoid an international race to the bottom on tax. Implementing the President’s global minimum
tax would level the playing field for small businesses and stop other countries from luring jobs away
from the United States with rock-bottom tax rates.