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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 Democratic
Presidential Nominee Biden’s Tax
Proposals, September 2020 Update
• Democratic presidential nominee Joe Biden would enact a number of policies
that would raise taxes on individuals with income above $400,000, including
raising individual income, capital gains, and payroll taxes. Biden would also
raise taxes on corporations by raising the corporate income tax rate and
imposing a corporate minimum book tax.
• Biden’s plan would raise tax revenue by $3.05 trillion over the next decade on
a conventional basis. When accounting for macroeconomic feedback effects,
the plan would collect about $2.65 trillion the next decade. This is lower
than we originally estimated due to the revenue effects of the coronavirus
pandemic and economic downturn and new tax credit proposals introduced
by the Biden campaign.
• According to the Tax Foundation’s General Equilibrium Model, the Biden tax
plan would reduce GDP by 1.47 percent over the long term.
• On a conventional basis, the Biden tax plan by 2030 would lead to about 6.5
percent less after-tax income for the top 1 percent of taxpayers and about a
1.7 percent decline in after-tax income for all taxpayers on average.
Summary of Biden’s Tax Proposal Estimates
• Repeal the TCJA components for high-income filers;
Impose 12.4% Social Security payroll tax for wages
Increase the corporate income tax to 28%;
• Establish a corporate minimum tax on book income;
• Double the tax rate on GILTI and impose it country-