What Will The Biden Tax Plan Cost You? Analysis Finds Plan Would Raise $4 Trillion

The nonpartisan Tax Policy Center estimated Thursday the tax plan former Vice President Joe Biden proposed would raise the levy on the top 1% of Americans by 17%, an average $299,000 annually, with the top 0.1% getting socked for an average $1.8 million.

The center said the plan would increase taxes for all Americans, but 93% of the burden would fall on those making at least $157,000 annually.

“Under his plan, the highest-income households would see substantially larger tax increases than households in other income groups, both in dollar amounts and as share of their incomes,” the center said.

The analysis indicated Biden’s plan would raise an estimated $4 trillion over the next decade, $800 billion more than the Biden campaign estimated.

By contrast, Vermont Sen. Bernie Sanders, his remaining viable rival for the Democratic presidential nomination, wants to impose an extreme wealth tax that targets the net worth of married couples with more than $32 million in assets and income. Those on the low end of the scale would pay a 1% tax while those on the high end -- $10 billion and more – would pay 8%. Economists associated with the campaign estimate the tax would raise $4.35 trillion over the next 10 years.

Sanders has proposed a variety of other taxes as well to fund such things as universal healthcare.

The Biden plan would raise $2 trillion from the wealthiest individuals and $2 trillion from corporations to fund proposed breaks for such things as family caregiving, student loan forgiveness and electric cars.

The analysis did not cover tax benefits for older Americans or health-coverage-related provisions. Other areas not examined were tax-preferred contributions to retirement plans by caregivers not in the regular workforce, tax credits for child care, low-carbon manufacturing tax credits for businesses or expansion of the Affordable Care Act’s premium tax credit.

Biden targeted tax cuts signed into law in 2017 giving breaks to those making more than $400,000 and also would limit deductions for those in higher tax brackets, as well as raise tax rates on capital gains and dividends for those earning more than $1 million. He also lift the cap on Social Security payroll taxes, which currently is limited to the first $137,000 in wages.

Those making less than $26,000 annually would pay an average $30 more in taxes while those making $52,000 to $93,000 would have to fork over an average $260 more. Those making more than $837,000 would see their tax bills increase an average $299,000.

The Biden plan increases the corporate tax rate by seven percentage points to 28% and imposes a minimum 15% tax on income before taxes. He also would double the existing minimum tax on foreign subsidiaries of U.S. firms to 21%.