Key Points:
- Joe Biden’s proposed tax policy has been released. The chart above compares the proposed plan against Trump’s existing tax policies.
- While these figures use the highest rates across the four categories, Biden’s plan would increase taxes across the board.
- Biden has pledged not to raise taxes for Americans with income under $400K, but the taxes on corporations and small businesses would likely impact the majority of America.
- For example, small businesses account for 99% of U.S. businesses and nearly 50% of U.S. employment. It is unlikely that Biden’s plan to increase small business taxes by 10% would not have an impact on the middle class.
- Alternatively, census data recently showed that the Tax Cuts and Jobs Act passed in 2017 by the Trump administration caused double digit tax cuts for the middle class in 2019. Read more here.