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Tax hikes in Biden's spending plan could raise $500B less than estimated

Ordinary Guy

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Did anyone doubt a Biden administration that had done nothing but lie since the election? -OG

Findings from the Penn Wharton Budget Model, a nonpartisan group at the University of Pennsylvania's Wharton School, show that Biden's tax plan would actually raise about $1.5 trillion ($1,527,000,000,000) over the next decade, well below the nearly $2 trillion ($1,995,000,000,000) projected by the Biden team. That marks a difference of roughly $468 billion.

Although the White House initially proposed steep increases in corporate taxes, capital gains taxes and income taxes, the bulk of those plans appear to have fallen to the wayside after pushback from Sen. Kyrsten Sinema, D-Ariz. The majority of former President Donald Trump's signature 2017 tax law, which substantially lowered rates for corporations and well-off Americans, will likely remain intact in the newest Build Back Better plan.

The framework that Biden rolled out relies on a 15% corporate minimum tax, surtaxes on the top sliver of U.S. households, stricter tax enforcement, taxes on corporate stock buybacks and higher taxes on U.S. companies' foreign earnings.

"The plan is more than fully paid for by asking the wealthiest Americans and most profitable corporations to pay their fair share. It does not raise taxes on small business and anyone making less than $400,000 per year," the White House said in a fact sheet. "It will also generate economic growth that will increase tax revenue and contribute to deficit reduction."

Some of the biggest revenue discrepancies in Biden's plan stem from the proposed 15% minimum on corporations based on profits they report to shareholders, a tax that would only apply to companies that reported over $1 billion in income for three straight years. Although the White House estimated the minimum could increase tax revenue by $325 billion, Penn Wharton found it would be closer to $195 billion.

 

JohnDB

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Wealthy corporations and people hire experts in how to retain wealth... meaning that businesses react to tax plans...shock shock.
 

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