Mr. Biden’s Tax Plans Would Slow Growth, Hurt Jobs
Article from For Liberty by Norm Leahy.
Democratic presidential nominee Joe Biden has proposed a number of changes to individual and corporate taxes should he be elected. What does he have in mind? The Tax Foundation took a look at his various ideas and put a price tag on them.
The bottom line:
…Biden’s tax proposals would raise about $3.8 trillion over 10 years. The plan would also reduce long-run economic growth by 1.51 percent and eliminate about 585,000 full-time equivalent jobs.
*Repealing the Tax Cuts and Jobs Act (TCJA) individual income tax reductions for those earning over $400,000 and restoring the top marginal income tax rate to 39.6 percent from today’s 37 percent. The Section 199A deduction would also be phased out for those earning over $400,000.
*Taxing capital gains at ordinary income tax rates—up from a top rate of 23.8 percent today—for those earning over $1 million. Biden would also eliminate step-up in basis for inherited assets with capital gains, instead taxing those gains at death.
*Capping the value of itemized deductions to 28 percent for those in higher marginal tax brackets and restoring the Pease limitation on itemized deductions for those with taxable income above $400,000.
*Raising the corporate income tax from 21 percent to 28 percent.
*Imposing a 15 percent minimum book tax on corporations with $100 million or greater in income.
*Doubling the tax rate on Global Intangible Low Tax Income (GILTI) earned by foreign subsidiaries of U.S. firms, from 10.5 percent to 21 percent.
*Imposing the 12.4 percent Social Security payroll tax on wage and self-employment income earned above $400,000.
Many of these ideas were floated before the coronavirus sideswiped the U.S. and global economies. The Tax Foundation notes that these proposals might have to be shelved given current conditions.