Incoming US President Joe Biden has a series of tax changes up his sleeve that will increase the tax burden on Americans by up to $3.7 trillion over the next decade. The changes are also very progressive in nature.
“I’m going to raise taxes on everyone who earns over $400,000 a year. Very rich people should pay a fair share of their income,” Joe Biden said during his presidential campaign. In a similar vein, he also commented on the address of companies.
Now an independent and nonprofit called the Committee for a Responsible Federal Budget has calculated how much Biden’s tax plans will actually cost. Over the coming years, taxes in the US are expected to increase by $3.35 trillion to $3.67 trillion, representing 1.3 to 1.4 percent of US GDP over the same period.
Taxes are expected to increase the highest percentage of Americans by 13 to 18 percent compared to today, while most other income groups are 0.2 to 0.6 percent. Businesses are expected to raise taxes by $1.6 trillion to $1.9 trillion, while for the highest-income people by $1 trillion to $1.2 trillion. Biden also supports a bank tax that is expected to raise up to $100 billion, the Committee for a Responsible Federal Budget also calculated.