How Biden's corporate tax rate increase would affect Americans
October 15, 2020
Biden tells Wall Street donors they ‘can afford’ his tax increases: Gasparino
Sources tell FOX Business’ Charlie Gasparino that Joe Biden met with Wall Street executives last week and says he won’t back away from raising taxes.
Democratic presidential candidate Joe Biden has promised not to raise taxes on anyone making less than $400,000 a year, but his proposal to raise the corporate tax rate from 21% to 28% would result in increases for all Americans in the long run, according to a new analysis.
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The former vice president's corporate tax increase is by far the largest hike of a bevy of taxes Biden has proposed on the campaign trail. The American Enterprise Institute, a conservative think tank, found that his tax plan would raise $2.8 trillion over the next decade, $1.9 trillion of which would come from the corporate tax hike and broadening of the business tax base.
Another $616.8 billion would be raised through income and payroll tax increases, while the final $276.4 billion would be raised through estate and gift tax increases.
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His plan would reverse the 2017 GOP income tax cut only for people who make more than $400,000, increasing their tax rate from 37% to 39.6%. He would also apply the 12.4% Social Security payroll tax to earnings over $400,000.
As a result of these taxes, the top 1% would see a reduction in after-tax income of 14.2%, taxpayers between the 95th and 99th percentile would see a small reduction in after-tax income, and everyone else would see an increase in after-tax income ranging from .5% to 11.3%.