Joe Biden’s tax plan to raise $3 trillion over next decade: US think-tank

Democratic presidential minee Joe Biden’s tax plan would raise about $3 trillion over next 10 years and would amount to $2.65 trillion after accounting for ecomic effects, said a US think-tank in its report. According to a new analysis from right-leaning Tax Foundation, tax collection would be lower than original estimate, released in April, due to ecomic downturn following coronavirus pandemic and new tax credit proposals introduced by Biden campaign.

Biden campaign has updated tax plan and repealed TCJA ( Tax Cuts and Jobs Act) components for high-income filers. It has anunced to impose 12.4 per cent Social Security payroll tax for ws above $400,000. It would also increase corporate income tax to 28 per cent and establish a corporate minimum tax on book income. Biden’s tax plan would reduce GDP by 1.47 per cent over long term, said think-tank.

“On a conventional basis, Biden tax plan by 2030 would lead to about 6.5 percent less after-tax income for top 1 percent of taxpayers and about a 1.7 percent decline in after-tax income for all taxpayers on aver,” report read.

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Trump's tax return

Trump’s campaign has been targeting Biden’s tax plan, claiming that it would crush middle class. However, data suggests that bottom 80 per cent of taxpayers would witness an increase in ir income in 2021 under Biden’s policies. report has been released hours before first presidential debate between Trump and Biden.

Meanwhile, US President has been facing backlash over a report by New York Times which claimed Trump paid federal income taxes in 10 of past 15 years, largely because he reported losing much more money than he made. report furr added that Trump paid only $750 in federal taxes year he was elected and $750 again in his first year in White House.

Read: Trump Dismisses Media Report Accusing Him Of Tax Avoidance As 'fake News'

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(Im: AP)