Even moderate Joe Biden would significantly increase taxes on the wealthy if elected

“The proposal is very progressive,” said Gordon Mermin, senior research associate at TPC. 

The Biden campaign did not immediately respond to a request for comment.

The $4 trillion in new revenue is roughly evenly split between increases in individual and business taxes. For households, restoring a top tax rate of 39.6%, up from 37% now, would generate about $143 billion over a decade, according to TPC. Capital gains would be taxed at the same rate as ordinary income for those earning more than $1 million, adding another $448 billion in federal revenue. 

But the biggest tax increase on households would be the application of the payroll tax to income over $400,000. That provision alone would raise $962 billion over a decade, TPC found.

Those measures mean the wealthiest households would experience the biggest hit under Biden’s proposal. Overall, TPC calculated that almost 93% of the tax increases would be borne by the top 20% of households. The top 1% — those who make more than $837,000 — would see their tax burden jump by nearly $300,000, a roughly 17% reduction in after-tax income.

Still, all households would see at least a small tax hike in the first year of Biden’s plan. Those with the lowest incomes would see an average increase of $30, or about 0.2% of their after-tax earnings. However, TPC found that the increase is an indirect result of raising taxes on corporations, rather than direct changes to rates or benefits for individuals. 

On the business side, Biden has pledged to raise the corporate rate from 21% to 28% — a measure TPC estimates would raise a whopping $1.3 trillion. Doubling the rate on certain types of foreign income would bring in another $309 billion. 

Article source: https://www.cnbc.com/2020/03/05/joe-biden-would-significantly-increase-investors-taxes-if-elected.html