Both former Vice President Joe Biden and President Donald Trump approach the 2020 presidential election with plans on how to allocate taxes throughout our country.
Biden's Tax Plan
Democratic presidential nominee Joe Biden has a proposal to enact policies that are expected to raise taxes on individuals with income above $400,000. The plan is slated to include raising individual income, capital gains, and payroll taxes. The income tax rate for corporations would also increase as well as establishing a corporate minimum book tax. This plan is projected to raise tax revenue by $3.3 trillion over the next decade on a conventional basis. When you put into account the macroeconomic feedback effects from the pandemic, the plan would collect about $2.8 trillion over the next decade.
Trump's Tax Plan
Republican presidential nominee Donald Trump proposes a tax cut to increase the take-home pay of individuals. This is dubbed the "Made in America" tax credit. Additionally, he proposes to expand "Opportunity Zones" which is a program created under the TCJA (Tax Cuts and Jobs Act) to propel investment in areas of economic distress by providing capital gains tax relief for individuals and businesses investing in qualified opportunity zones. This plan is projected to cut taxes by about $11.98 trillion over the next decade on a static basis.
Watson, G., Li, H., & LaJoie, T. (2020, October 22). Details and Analysis of Biden's Tax Plan. Retrieved November 05, 2020, from https://taxfoundation.org/joe-biden-tax-plan-2020/.
Cole, A. (2020, June 14). Details and Analysis of Donald Trump's Tax Plan. Retrieved November 05, 2020, from https://taxfoundation.org/details-and-analysis-donald-trump-s-tax-plan/