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The Tax Foundation is the nation’s
leading independent tax policy
research organization. Since 1937,
our research, analysis, and experts
have informed smarter tax policy
at the federal, state, and global
levels. We are a 501(c)(3) nonprofit
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Details and Analysis of Former Vice
President Biden’s Tax Proposals
• Former Vice President Joe Biden would enact a number of policies that would
raise taxes, including individual income taxes and payroll taxes, on high-
income individuals with income above $400,000.
• Biden’s plan would raise tax revenue by $3.8 trillion over the next decade on
a conventional basis. When accounting for macroeconomic feedback effects,
the plan would collect about $3.2 trillion over the next decade.
• According to the Tax Foundation’s General Equilibrium Model, the Biden tax
plan would reduce GDP by 1.51 percent over the long term.
• On a conventional basis, the Biden tax plan would lead to 7.8 percent less
after-tax income for the top 1 percent of taxpayers, 1.1 percent lower after-
tax income for the top 5 percent, and around 0.6 percent less after-tax
income for other income quintiles in 2030.
Summary of Former Vice President Biden’s Tax Proposal Estimates
Conventional Revenue, 2021-2030 (Billions of Dollars)
Dynamic Revenue, 2021-2030 (Billions of Dollars)
Gross Domestic Product (GDP)
Full-time Equivalent Jobs
Source: Tax Foundation General Equilibrium Model, November 2019.
Senior Economist Senior Policy Analyst
TAX FOUNDATION | 2
Details of the Plan
Payroll tax and individual income changes:
Imposes a 12.4 percent Old-Age, Survivors, and Disability Insurance (Social Security) payroll
tax on i