Biden prepares Pennsylvania swing to make the economic case against Trump

By Arlette Saenz, CNN

Washington (CNN) — President Joe Biden is preparing a campaign swing through battleground Pennsylvania next week, zeroing in on his plans to raise taxes for the wealthiest Americans and corporations as he looks to present an economic contrast in his close contest against former President Donald Trump.

The push will kick off Tuesday with a major address in Biden’s hometown of Scranton, Pennsylvania, campaign officials told CNN, a site he’s often turned to as the backdrop for making his economic populist pitch to voters.

“The address will drive home a simple question: Do you think the tax code should work for rich people or for the middle class?” a campaign official told CNN. “The president has made it clear what he thinks the answer is, and so has Donald Trump.”

The president then will travel to the Pittsburgh area on Wednesday and speak at a campaign event in Philadelphia on Thursday, officials said. The campaign also plans to hold events in other battleground states next week to push the economic case against Trump, who will be required to be in a New York City courtroom for jury selection at his hush money trial.

Biden’s campaign swing, the first since his March barnstorm of battleground states that will effectively serve as counterprogramming to Trump’s trial, comes as both men are trying to win over working-class voters. By focusing on taxes, the president also is attempting to break through on economic issues at a time when voters have maintained pessimistic views of their personal financial state and his handling of the economy, which has proven to be a vexing political issue in his reelection bid.

Biden will deliver his Scranton speech one day after Tax Day and less than two weeks after Trump told wealthy donors that extending the sweeping tax cuts congressional Republicans enacted in 2017 would be a key priority if he’s elected to a second term. While the Tax Cuts and Jobs Act reduced taxes for most Americans, the rich benefited far more than others.

The Biden campaign seized on Trump’s comments – spokesperson Sarafina Chitika said the former president is “promising tax giveaways to billionaire donors.”

The individual tax provisions in the 2017 law are set to expire at the end of the year. If they are extended, more than 60% of the benefits would go to those in the top 20% of income, according to the Tax Policy Center, a nonpartisan research group. More than 40% of the benefits would go to those in the top 5%.

If Trump achieves his goal, those making between $400,000 and $1 million would get an average tax cut of about $15,000, lifting their after-tax incomes by 3.1%, according to the center’s estimates. Those who earn $1 million or more would enjoy an average tax cut of about $50,000, raising their after-tax incomes by 2.3%.

In his State of the Union address last month, Biden outlined proposals to raise taxes on the wealthiest Americans and corporations while pledging those earning less than $400,000 would not have their taxes increase.

“Look, I’m a capitalist. If you want to make or can make a million or millions of bucks, that’s great. Just pay your fair share in taxes,” Biden said. “A fair tax code is how we invest in things that make this country great: health care, education, defense and so much more.”

Biden’s budget has called for a 25% minimum tax on all income – including unrealized gains on assets, which are not currently taxed – for the wealthiest .01% of Americans, impacting those with a net worth of more than $100 million. He’s also called for increasing the corporate tax rate to 28% up from the 21% set by the 2017 tax cuts.

Tackling the economy

Biden has sought to highlight efforts to bring down costs on everything from prescription drugs to junk fees. His team has emphasized what they see as bright spots in the economy, including low unemployment, wage gains and an overall downward trend in inflation from its highest point earlier in the administration.

But concerns about stubborn inflation came back into the spotlight this week as the Consumer Price Index showed consumer prices picked up again last month, marking a 3.5% increase for the 12 months ending in March. Another key inflation gauge showed producer prices rose 2.1% in March, lower than expected but increasing at the highest rate since April 2023. A key consumer sentiment survey is expected to be released on Friday.

In the wake of these reports, Biden has acknowledged there’s “more to do” to drive down costs and argued corporations with high profits should lower prices for consumers. The president defended his handling of inflation on Wednesday.

“We have a plan to deal with it whereas the opposition – my opposition – talks about two things. They just want to cut taxes for the wealthy and raise taxes on other people. And so, I think they have no plan. Our plan is one, I think, is so sustainable,” he told reporters in the Rose Garden.

A recent AP-NORC poll found 37% of Americans approve of Biden’s handling of the economy. According to a CNN poll from earlier this year, a 55% majority of Americans overall say they feel Biden’s policies have worsened economic conditions in the country, while just 26% believe his policies have improved conditions. Another 19% say they’ve had no effect – numbers that are nearly unchanged from the summer.

Battle for Pennsylvania

Biden will deliver his remarks in a battleground state that could decide whether he wins a second term. The president and his predecessor are both making appeals to working class voters, particularly in industrial states like Pennsylvania, Michigan and Wisconsin, the so-called “blue wall” that Biden is looking to keep intact.

Biden has traveled to Pennsylvania four times this year with two stops in the Philadelphia area, one outside of Pittsburgh and another in Allentown. This will mark the first time Biden has traveled to Scranton this year.

Trump is set to hold a rally in Schnecksville near Allentown on Saturday.

The president has often used his hometown to promote his blue-collar upbringing, portraying himself as an advocate for working-class Americans while arguing Trump is on the side of the wealthy.

“I view this campaign as a campaign between Scranton and Park Avenue,” Biden said at a CNN townhall in Scranton in 2020. “All Trump can see from Park Avenue is Wall Street. All he thinks about is the stock market.”

A recent Wall Street Journal poll of registered voters in Pennsylvania found no clear leader in a two-way race with Trump at 47% and Biden at 44%, within the margin of error. The WSJ survey found registered voters across seven battleground states believe Trump would handle the economy better than Biden, with Trump coming in at 54% and Biden at 34%.

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