What Biden's tax on billionaires and big corporations could mean for YOU: Experts tell Daily Mail how the president's hikes on the mega-rich may impact all Americans

President Joe Biden will urge Congress on Thursday night to introduce sweeping tax hikes on billionaires and corporations to make sure they 'pay their fair share'. 

The proposals include raising the corporate minimum tax for companies worth more than $1 billion to 21 percent, up from the 15 percent that went into effect last year.

The president will also call for a 25 percent tax on individuals with wealth of more than $100 million and the abolition of tax deductions on corporate jets.

Biden has insisted that his plans will not increase taxes for Americans making less than $400,000.

But those not in the top one percent of American earners could still feel pinch. 

DailyMail.com has spoken to experts about Biden's bold tax scheme and whether they believe it will impact the middle class. 

White House officials said Biden would preview the steps that will be part of a proposed fiscal 2025 budget released next week that aims to cut the federal deficit by $3 trillion while cutting taxes for low-income Americans

David Williams, president of the conservative Taxpayers Protection Alliance, warned when Biden brags about the economy, he will call for increases which will hurt taxpayers, consumers and businesses.

'Biden’s Robin Hood approach of taxing the rich to give to the poor will backfire when companies raise prices to accommodate for the tax increases because we all know that companies will pass those increases to consumers,' he said.

According to White House officials, the steps are part of his proposed 2025 budget which will be released next week and are aimed at reducing federal deficits by $3 trillion over the next decade.

At the same time, the president continues to call for reversing parts of the 2017 Republican tax law passed under President Donald Trump. 

Biden wants to raise the corporate tax rate to 28 percent, up from its current 21 percent but still below the 35 percent it was before the GOP law passed.

 'Raising the corporate rate will also incentivize companies to leave the country, thereby threatening thousands of American jobs,' said Williams.

Garrett Watson from the Tax Foundation, a center-right nonprofit, said the likely proposals by the president are in line with the approach they've seen over the past few years, which have largely not earned political support.

The Tax Foundation found raising the corporate tax rate to 28 percent would end up reducing growth by 0.7 percent. 

Both the Tax Foundation and Institute on Taxation and Economic Policy (ITEP) estimated it would reduce revenue by $1.3 trillion. 

Biden would extend child tax credits and not raise taxes on anyone earning under $400,000

Tax cuts introduced and passed under Donald Trump run out in 2025

But the ITEP, a more liberal leaning non-partisan organization, has argued that claims in favor of a lower rate are weak and based on a misunderstanding of how corporations respond to tax changes.

They claim corporate tax cuts largely benefit shareholders and have been used for stock buybacks not investing and jobs creation.

The ITEP previously found that, in the first five years after the corporate tax rate was set at 21 percent, Fortune 500 companies and S&P 500 companies that were consistently profitable during that period were actually paying much less.

Due to tax breaks and loopholes they were effectively paying a rate of 14.1 percent. 

They have been impacted by Biden's corporate minimum tax of 15 percent and that would go up under the president's newest proposal. 

Biden will also renew his 'billionaire tax' proposal, which is actually significantly below that level.

It imposes a 25 percent minimum tax on income for those Americans with wealth of over $100 million.

Biden is targeting tax breaks on corporate jets

According to Howard Gleckman, senior fellow in the Urban-Brookings Tax Policy Center, the proposal to further tax the very wealthiest Americans would not have much impact on everyday Americans.

'There might be sort of an indirect effect in that those very very rich people might make fewer investments on the margin,' he said.

'And to the degree they make fewer investments it would create less demand for stock and reduce stock prices.

'But I can't imagine it would have very much effect on the average American stock investment,' he added.

The average American worker paid about 25 percent tax in 2022, the OECD reports.

White House research found the wealthiest individuals paid about 8 percent from 2010 to 2018. 

At the same time, Biden will also call for Congress to approve far stricter limits on business income deductions for executive pay, limiting them to $1 million for any given employee.

Current law already prohibits deductions on compensation for chief executive officers, chief financial officers and other key positions.

White House officials said the new proposal would cover all employees paid more than $1 million, and raise over $250 billion in new corporate tax revenue over 10 years.

ITEP estimates the move would have a $270 billion impact over ten years but warned more details are needed to understand exactly what the president is proposing. 

Biden will also go after business income deductions for the use of corporate jets, an area already targeted for audits by the Internal Revenue Service. 

This includes extending the depreciation period for corporate jets to seven years, the same as commercial aircraft, from five years currently.

That will reducing the annual deductions on jets, an administration official said.

What would have the greatest immediate impact on average Americans is whether Biden and Republicans can reach a deal as many of the tax cuts passed in 2017 are set to expire at the end of 2025.

Biden will pledge to extend Trump-era tax cuts for those earning under $400,000, call for restoring a COVID-era expansion of the Child Tax Credit that paid eligible families up to $3,600 a year per child, and increase a tax credit for low-wage workers.

Republicans by contrast want to extend all provisions in the Trump law includin tax cuts for those above the $400,000 threshold. 

No matter what new corporate tax proposals or 'billionaire' taxes the president proposes, they are not going to pass in Congress. 

'Clearly what Biden is trying to do is distinguish his tax agenda from Trump's tax agenda,' said Gleckman. 

However, Trump has not laid out his future tax agenda. 

What he has talked about as he campaigns to return to the White House is tariffs. 

He has talked about raising them by as much as 60 percent on Chinese goods.

Such a move would have a substantial impact on Americans' purchasing power.