Biden tax increases would raise $4T, analysis says (and Biden's plan is "very progressive")

[highplainsdem]

https://www.politico.com/news/2020/03/05/joe-biden-tax-increases-122199

Among them, the former vice president’s plan would generate about $1.3 trillion by boosting the corporate income tax rate to 28 percent from its current level of 21 percent. Another $962 billion would come from applying Social Security taxes to earnings above $400,000.

In addition, higher capital gains and dividend taxes would raise about $448 billion under two changes Biden has floated. He would tax such earnings the same as ordinary income for taxpayers with incomes exceeding $1 million, and tax unrealized capital gains of more than $100,000 at death unless left to a surviving spouse or donated to charity.

Biden's plan would also produce about $432 billion by repealing income tax reductions from 2017’s Tax Cuts and Jobs Act for taxpayers with incomes above $400,000. He would restore their top individual tax rate to 39.6 percent, limit their itemized deductions and phase out business income deductions they get.

-snip-

The distribution skews heavily toward those with higher income, with a 17 percent average tax increase on the top 1 percent and more than 23 percent for the top 0.1 percent. The top 20 percent would bear almost 93 percent of the tax increases.

-snip-

More at the link.

[PatSeg]

1. Very interesting

I wonder who his financial adviser(s) is. It used to be Jared Bernstein.

[PETRUS]

2. Emmanuel Saez and Gabriel Zucman have examined Biden's tax proposals.

For those who don't know, they are economists and the authors of "The Triumph of Injustice: How the Rich Dodge Taxes and How to Make Them Pay."

Biden's plan is more progressive than the current tax code, and also more progressive than the tax code under Obama, but significantly less progressive than what they (Saez and Zucman) think is necessary, and less progressive than what Warren or Sanders have proposed. Still, it would represent an improvement.

For those who are interested, one can go to https://www.taxjusticenow.org/#/#makeYourOwnTaxPlan and choose tax plans from a drop down menu (or design your own) and view the results on a graph.