USA
"Joe Biden wants to raise taxes to pay for an agenda that includes fighting climate change and expanding child care, pushing federal revenue about 9% above what it would be without any policy changes in the next decade."
"Mr. Biden, the former vice president, would target his tax increases on high-income households, which he defines as those making above $400,000 a year. He said recently that no one making under $400,000 would pay more.
The household types included here arenāt representative of the U.S. population and instead are constructed to show the impact of various Biden policies.
āNo president can get all the policies passed that they want,ā Mr. Pomerleau said. āPeople should focus a little more on the fact that he wants to raise taxes mostly on high-income households and the rough magnitudes of the tax increases, rather than, for example, the specific contours of his policy to tax capital gains.ā
Mr. Bidenās proposed corporate tax increases make up a significant piece of his $4 trillion tax plan. They arenāt part of this household analysis, and they would mostly hit high-income people that own stock, as well as foreigners, endowments and pension funds. But some of the burden would fall on the rest of the population, in the short term on those who own stock, and potentially in the longer term as companies respond to higher taxes by limiting wage increases."
"Many middle-income households would see little if any change in their tax burdens. They would get to keep the tax cuts they got in the 2017 law signed by President Trump.
In some cases, Mr. Biden has proposed targeted tax cuts that would help some but not all households. Those include a child-care tax credit of up to $8,000 for one child and $16,000 for two. That credit means that this household would get a larger net benefit from the income tax system than it does now."
In addition to tax increases, Biden proposes a variety of tax incentives that are meant to encourage specific kinds of activity, ranging from carbon capture and storage to an $8,000 tax credit for childcare. In addition to those tax credits, he proposes:
taxfoundation.org
SO far it isn't looking that bad. No tax increases for middle and low income earners, they keep their current tax cuts and some households get additional cuts.Higher taxes on high earners to pay for much needed programs. The renters credit and the low income housing credit will help some families really struggling to keep a roof over their heads.
"Mr. Biden, the former vice president, would target his tax increases on high-income households, which he defines as those making above $400,000 a year. He said recently that no one making under $400,000 would pay more.
The household types included here arenāt representative of the U.S. population and instead are constructed to show the impact of various Biden policies.
āNo president can get all the policies passed that they want,ā Mr. Pomerleau said. āPeople should focus a little more on the fact that he wants to raise taxes mostly on high-income households and the rough magnitudes of the tax increases, rather than, for example, the specific contours of his policy to tax capital gains.ā
Mr. Bidenās proposed corporate tax increases make up a significant piece of his $4 trillion tax plan. They arenāt part of this household analysis, and they would mostly hit high-income people that own stock, as well as foreigners, endowments and pension funds. But some of the burden would fall on the rest of the population, in the short term on those who own stock, and potentially in the longer term as companies respond to higher taxes by limiting wage increases."
"Many middle-income households would see little if any change in their tax burdens. They would get to keep the tax cuts they got in the 2017 law signed by President Trump.
In some cases, Mr. Biden has proposed targeted tax cuts that would help some but not all households. Those include a child-care tax credit of up to $8,000 for one child and $16,000 for two. That credit means that this household would get a larger net benefit from the income tax system than it does now."
In addition to tax increases, Biden proposes a variety of tax incentives that are meant to encourage specific kinds of activity, ranging from carbon capture and storage to an $8,000 tax credit for childcare. In addition to those tax credits, he proposes:
- A restoration of the electric vehicle tax credit
- Tax credits for residential energy efficiency
- Making permanent the New Markets Tax Credit
- Establishing a Manufacturing Communities Tax Credit
- A renterās credit to reduce rent and utilities to 30 percent of income
- An expanded Earned Income Tax Credit (EITC) for those older than 65
- A $5,000 tax credit for informal caregivers
- Expanding the Low-Income Housing Tax Credit (LIHTC)
- A reinstated Solar Investment Tax Credit (ITC)
- A tax credit for childcare facilities built by businesses
- Providing a 26 percent tax credit to match traditional retirement contributions as a replacement to deductibility of those contributions (Roth treatment remains unchanged)
- Establishing a First Down Payment Tax Credit of up to $15,000
Reviewing Joe Bidenās Tax Vision
Bidenās tax vision: higher taxes on high-income earners and businesses paired with more generous provisions for specific activities and households.
taxfoundation.org
SO far it isn't looking that bad. No tax increases for middle and low income earners, they keep their current tax cuts and some households get additional cuts.Higher taxes on high earners to pay for much needed programs. The renters credit and the low income housing credit will help some families really struggling to keep a roof over their heads.
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