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1 Garrett Watson, et al., Details and Analysis of President-Elect Joe Biden's Tax Proposals, October 2020 Update 1 (2020)

handle is hein.taxfoundation/dsadasopset0001 and id is 1 raw text is: Details and Analysis of President-elect Joe Biden's Tax Proposals, October 2020 Update FISCAL FACT No. 730 Oct. 2020 Garrett Watson Senior Policy Analyst Huaqun Li Senior Economist Taylor LaJoie Policy Analyst This report has been updated to reflect the results of the 2020 presidential election. Key Findings President-elect Joe Biden, according to the tax plan he released before the election, would enact a number of policies that would raise taxes on individuals with income above $400,000, including raising individual income, capital gains, and payroll taxes. Biden would also raise taxes on corporations by raising the corporate income tax rate and imposing a corporate minimum book tax. Biden's plan would raise tax revenue by $3.3 trillion over the next decade on a conventional basis. When accounting for macroeconomic feedback effects, the plan would collect about $2.8 trillion the next decade. This is lower than we originally estimated due to the revenue effects of the coronavirus pandemic and economic downturn and new tax credit proposals introduced by the Biden campaign. According to the Tax Foundation's General Equilibrium Model, the Biden tax plan would reduce GDP by 1.62 percent over the long term. On a conventional basis, the Biden tax plan by 2030 would lead to about 7.7 percent less after-tax income for the top 1 percent of taxpayers and about a 1.9 percent decline in after-tax income for all taxpayers on average. Summary of Biden's Tax Proposal Estimates The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and global levels. We are a 501(c)(3) nonprofit organization. ©2020 Tax Foundation Distributed under Creative Commons CC-BY-NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org Plan Highlights Repeal the TCJA components for high-income filers; Impose 12.4% Social Security payroll tax for wages above $400k; Increase the corporate income tax to 28%; Establish a corporate minimum tax on book income; Double the tax rate on GILTI and impose it country-by- country; Temporarily increase the generosity of the Child Tax Credit and Dependent Credit Conventional Revenue, 2021-2030 $3334 (Billions of Dollars) Dynamic Revenue, 2021-2030 $2782 (Billions of Dollars) Gross Domestic Product (GDP) -1.62% CapitalStock -3.75% Full-time Equivalent Jobs -542,000 Source: Tax Foundation General Equilibrium Model, January 2020.