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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
organization.
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Designer, Dan Carvajal
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Analysis of Democratic Presidential
Candidates’ Corporate Tax Proposals
Key Findings
• 2020 Democratic presidential candidates have proposed various changes
to the corporate income tax to raise revenue for their policy proposals. This
includes increasing the corporate income tax rate, ranging from 25 percent to
35 percent, imposing a corporate surtax or a minimum tax, and lengthening
depreciation schedules.
• The effect of each of these proposals will be to increase the cost of capital
in the United States, making it more expensive for businesses to make
productivity-enhancing investments, and by doing so, reduce economic
output, wages, and employment.
FISCAL
FACT
No. 696
Feb. 2020
Erica York
Economist
Summary of Democratic Presidential Corporate Tax Proposal
Estimates
Fmr.
Vice
President
Biden (D)
Fmr.
Mayor
Bloomberg
(D)
Fmr.
Mayor
Buttigieg
(D)
Sen.
Klobuchar
(D-MN)
Sen.
Sanders
(I-VT)
Sen.
Warren
(D-MA)
Plan Details
28%
corporate
income tax
rate and 15%
minimum
tax on book
income
28%
corporate
income tax
rate
35%
corporate
income
tax rate
25%
corporate
income
tax rate
35%
corporate
income tax
rate and
economic
depreciation
for all
investments
35%
corporate
income tax
rate and
7% surtax
on book
income
Conventional
Revenue,
2021-2030
(Billions)
$1,553
$1,253
$2,507
$716
$3,871
$3,379
Dynamic
Revenue,
2021-2030
(Billions)
$1,351
$1,093
$2,149
$629
$2,689
$2,683
Gross
Domestic
Product (GDP)
-1.20%
-1.00%
-2.10%
-0.50%
-3.80%
-3.70%
Capital Stock
-2.90%
-2.30%
-5.10%