Joe Biden’s tax plans would significantly raise taxes on the wealthiest Americans if he becomes President of the U.S., according to news reports.
The current front-runner in the Democratic race for president is seen as a moderate, compared to Vermont senator and self-described democratic socialist Bernie Sanders. But Biden’s tax plans would put the overwhelming bulk of his proposed tax increases on the wealthiest households, according to a new analysis by the nonpartisan Tax Policy Center cited by CNBC.
Biden’s plan to raise taxes on corporations and wealthy individuals is expected to boost federal revenue by $4 trillion during the next decade. The total is evenly distributed between corporate and individual taxes, the TPC says.
This includes raising the corporate rate from 21% to 28%; doubling the rate on some foreign income; bringing the top individual tax rate back up to 39.6%, from 37% now; and taxing capital gains at the same rate as ordinary income for individuals earning $1 million or more, CNBC reports.
Meanwhile, Biden’s proposal also includes applying a payroll tax to incomes over $400,000, which is expected to bring in $962 billion over a decade, according to the TPC, the news channel reports.
TPC found that these measures would put close to 93% of the additional tax burden on the top 20% of households, according to CNBC. And the top 1% of Americans, or those earning more than $837,000, would pay almost $300,000 more in taxes. That total would slash after-tax earnings of those individuals by around 17%, the news channel reports.
“The proposal is very progressive,” says Gordon Mermin, senior research associate at TPC, according to CNBC.
Biden’s campaign didn’t respond to the news channel’s request for comment.