Home » Politics » Trump would cut taxes by about $1.7T, Biden would hike by $4.3T: Budget watchdog
Trump would cut taxes by about $1.7T, Biden would hike by $4.3T: Budget watchdog
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A report released on Wednesday by the Committee for a Responsible Federal Budget (CRFB) estimates that Democratic presidential nominee Joe Biden's proposed policies would increase taxes by about $4.3 trillion over 10 years while President Trump's would decrease tax revenue for the government by about $1.7 trillion, even as Biden's overall fiscal agenda would likely increase the federal deficit slightly more than Trump's.
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The CRFB report notes that there is a wide disparity between the low- and high-end potential deficit effects of the Trump and Biden agendas, largely because of significant vagueness in both men's plans, especially Trump's
At the high end, Biden's policies could increase the federal deficit by $8.3 trillion over the next 10 years above what is projected under current law, while Trump's could boost the deficit by $6.85 trillion. On the low end, Trump is projected to raise the deficit by at least $700 billion while Biden, according to the CRFB, might decrease the federal deficit by $150 billion if all of his spending meets low-end estimates and his taxes generate maximum income for the government. These estimates exclude one-time policies, CRFB said.
CRFB US Budget Watch 2020 Cost of Trump and Biden Plans by FOX Business on Scribd
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But the disparity between the two is most clear on taxes, where CRFB estimates at the low-end Biden's policies would raise taxes by $3.65 trillion by 2030 and potentially as much as $6.6 trillion.
The largest tax increase under the Biden plan would come from an increase in corporate tax rates to 28% from 21%, along with a handful of other tax hikes including a 15% minimum tax on "book" profits. That would bring in $1.8 trillion, according to the CRFB's central estimate.
Biden would also increase taxes on those making more than $400,000 per year by boosting the top income tax bracket rate to 39.6% from 37%. He would boost capital gains taxes to 39.6% from 20% for individuals and couples making more than $1 million and he would eliminate the "stepped-up basis" at death on capital gains for higher earners. Those individual tax policies, along with a handful of others, would result in about $1.4 trillion in tax hikes — though the CRFB high-end estimate on this category goes as high as $2.3 trillion.
Biden would also increase the payroll tax minimum for Social Security (a $900 billion tax hike), charge large banks a "financial risk fee" ($100 billion) and have the IRS crack down on tax evasion ($100 billion), according to the CRFB.