Joe Biden would increase taxes by $4 trillion

Naomi Jagoda reports for The Hill that a report released yesterday by the Urban-Brookings Tax Policy Center (TPC), which is led by a former Obama administration official, determined that Biden’s tax proposals would increase taxes by $10.2 trillion:

• $4 trillion or 1.5% of U.S. gross domestic product (GDP) from 2021 to 2030.
• Another $6.2 trillion in taxes from 2031 to 2040.

About half of the revenue gain in the first decade would come from the proposed tax increases for individuals, and the other half would come from the proposed increases for businesses.
For individuals, Biden would:

• Increase the corporate tax rate from 21% to 28%, which would generate about one-third of overall revenue. The corporate tax rate increase will be passed onto consumers, making it in effect a tax increase on American workers and the middle class.
• Create a 15% minimum tax on the income companies report on their financial statements.
• Increase the minimum tax on corporations’ foreign earnings from 10.5% to 21%.
• Reduce tax breaks for the fossil-fuel and real-estate industries, while giving tax incentives for renewable energy and retirement savings.

The Urban-Brookings Tax Policy Center report points out that Biden’s proposed tax increases are “significantly” higher than those of Hillary Clinton in 2016, which totaled $1.4 trillion or 0.5% of GDP in tax increases over 10 years.

At a recent campaign appearance, Biden said to a supporter in the audience who said he got a Trump tax cut:

“That’s good. You know what, I’m proud to see you doing well already. Guess what. If you elect me, your taxes are gonna be raised, not cut!“