- American households making less than $ 400,000 don't see a tax increase under Joe Biden's tax plan, but the top 0.1% could end up paying an additional 12.4% analysis from the University of Pennsylvania shows.
- The ultrawealthy will also see cuts in their take-home salaries due to higher corporate taxes under the Biden plan.
- President Trump said he would try to cut all Americans' taxes again if they were re-elected, but has not shared any plans to do so.
- You can find more stories on the Business Insider homepage.
Former Vice President Joe Biden does not plan "biggest tax hike in history" for "middle-class families, small businesses and seniors" Show led by President Trump's re-election campaign entitlement, a new analysis von Biden's tax plan was found through the University of Pennsylvania's Wharton School of Business budget model.
Instead, Biden's plan calls for Americans with household incomes less than $ 400,000 to pay the same tax rate they've had since the president's tax cut in 2017 report.
However, wealthier Americans should prepare to pay. Former Vice President suggested A number of changes to the current tax law, including repealing parts of Trump's tax law, increasing corporate taxes and taxes on foreign profits, closing loopholes in real estate tax law, and removing fossil fuel subsidies.
While many Americans won't see a significant difference in their tax burden as part of this plan, corporate tax increases could slightly decrease their take-away pay and investment returns. This difference is greatest for those in the top 1.5%, who Penn economists estimate would represent a 17.7% wage cut. The chart below shows which Americans, broken down by class, could expect their effective tax rate to be below Biden's plan, taking into account his proposed corporate taxes.
For many Americans outside the top 1% – those who earn $ 710,000 or more – Biden's proposed tax rate is still lower than what they paid before the 2018 Tax Cut and Jobs Act, the Penn analysis shows. About 80% of the tax increases proposed by Biden concern just one percent pro report.
During the campaign, President Trump promised to lower taxes again for all Americans, but has not yet released a detailed plan on how to do it Bloomberg. The president cut taxes significantly with his 2017 Tax Cuts and Jobs Act. Two years after it went into effect, economists say it raised wages, however failed to stimulate the economy in the long term as promised.