Since there seems to be some confusion about Joe Biden’s tax plan, we decided clear up on the matter. This is not to support or diss Biden- it’s simply information. According to his website, there will be two tax plans, one to be effective immediately and long-term plan.
First, his strongest argument is not raising taxes on anyone who makes less than $400,000. Instead, they will possibly get a 0.9% decrease in after-tax income. He is adamant about taxing billionaires and corporations, taxing them 28% instead of 20%. Middle-class families will generally be unaffected. Additionally, taxes will fund The Green New Deal, healthcare, and support our workforce. In the long run, his tax policy will raise $3 trillion dollars over 10 years. Biden also plans on facing the national debt crisis.
Biden’s Tax Policy
For income taxes, there will be regulation of itemized deductions. The upper class will receive less tax deductions, while farmers can claim their agriculture tax refunds. The top income tax bracket will adjust to 39%. This aspect of Biden’s tax policy will align closely with Obama-era policy. Lower-class will have to pay little to none.
There will be changes to the housing marketing. Such as, first-time homeowner buyers can receive up to $15,000. Many care acts will expand: child care, elderly care, and veterans receiving better benefits. Biden will offer tax cuts for those being environmentally friendly. Such as, driving an electric car.
So, how will the policy affect our paychecks? Since social security is dwindling down, he plans on upping Social Security taxes on those making over $400,000 by 12.5%. Otherwise, no government taxes will affect paychecks.
Due to the complications of the race, not much more information can be found. We will have to wait and see how land & agricultural, sales, and other tax aspects will be affected.
It is important to note that while one may not be taxed more directly, they could indirectly. Since people fund the corporations, it is ultimately their funds that get taxed. Also, within the decade, Biden’s tax plan could generate revenue of about $3.3 trillion as well as decreasing the GDP 1.6%. You can read more about Trump and Biden’s tax plans and how they will affect you and the economy here.
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