Finance

Biden will reportedly fund his proposals by taxing the ultra-rich and massive corporations like Amazon and Netflix

Joe Biden, IowaScott Olson/Getty Images

Former vice president Joe Biden will fund some of his proposals through new taxes on the wealthiest individuals and corporations like Amazon and Netflix, according to a Bloomberg report. Both companies paid no federal income taxes over the last several years,

The Biden tax plan would raise $3.2 trillion to pay for his policy proposals like a $750 billion plan to shore up the Affordable Care Act and a $750 billion higher education plan that includes two years of free community college.

Bloomberg reported that the Biden plan would increase the top individual and corporate tax rates as he’s previously promised. It would also close loopholes and end a variety of tax breaks for the rich.

Biden is also seeking to slap new sanctions onto places like Bermuda and the Cayman Islands that “facilitate illegal corporate tax avoidance” and enable tax competition between governments.

“The vice president does think it’s very important to be clear with the American people regarding how you’re going to pay for things in order to demonstrate they can actually get it done,” Biden policy director Stef Feldman told Bloomberg.

Companies like Amazon and Netflix were able to avoid paying federal income taxes because they used a blend of tax breaks from new facilities, investments, and compensating their employees through stock. The corporate tax would generate $400 billion over a decade, according to a Biden campaign estimate.

The tax plan is far less ambitious than what some of Biden’s Democratic rivals have proposed, though its attempting to establish a contrast with Sen. Elizabeth Warren, a frontrunner for the nomination.

She has proposed a $30 trillion agenda advancing a litany of progressive goals, which includes creating a universal healthcare system in the form of Medicare for All.

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