Democratic presidential candidate Joe Biden’s current campaign plan would raise taxes by $2.4 trillion over the next decade, about 0.9 percent of
Democratic presidential candidate Joe Biden’s current campaign plan would raise taxes by $2.4 trillion over the next decade, about 0.9 percent of Gross Domestic Product (GDP), according to an updated analysis by the Tax Policy Center. The burden of nearly all those tax increases would fall on high income households. In 2022, on average, all but the highest-income 20 percent would get a tax cut under Biden’s plan, while the top 1 percent– those making about $790,000 or more– would see substantial reductions in their after-tax incomes.
TPC’s updated revenue estimates differ substantially from its March 5 analysis that showed Biden’s tax proposals would raise about $4 trillion.
- About one-third of the difference is due to new initiatives Biden proposed since February.
- Another third is the result of the recent economic slowdown, Biden’s revisions to his earlier proposals, and changes in modeling assumptions.
- About 20 percent is due to TPC’s assumption that due to the pandemic, Biden would delay the implementation of most proposals until 2022.
- The rest reflects TPC’s decision to not model some of Biden’s ideas because they are incomplete or because Biden has changed some proposals in ways that make them difficult to model.
TPC plans to analyze President Trump’s tax platform as well.
An average tax hike of $1,500
TPC estimates that Biden would raise taxes by an…