Where Do the Candidates Stand on Taxes? Some of Joe Biden’s Tax Proposals…

Joe Biden (D)

Joe Biden, under his proposed budget for FY 2025, would increase tax rates on corporate, individual, and capital gains income; expand tax credits for workers and families; expand tax bases to include more types of income; and maintain the current Section 301 tariffs on roughly $360 billion worth of goods from China while raising tariffs on an additional $18 billion worth of steel, aluminum, and green energy and medical goods.

Business Taxes:
Increase the corporate income tax rate to 28 percent.
Increase the global intangible low-taxed income (GILTI) tax rate from 10.5 percent to 21 percent and repeal the reduced tax rate on foreign-derived intangible income (FDII).
Repeal the base erosion and anti-abuse tax (BEAT) and replace it with an undertaxed profits rule (UTPR) consistent with the OECD/G20 global minimum tax model rules.
Expand the net investment income tax to nonpassive business income.
Raise taxes on the fossil fuel industry.
Capital Gains and Dividend Taxes:
Tax long-term capital gains and qualified dividends at ordinary income tax rates for taxable income above $1 million and tax unrealized capital gains at death above a $5 million exemption ($10 million for joint filers).
Tax carried interest as ordinary income.
Impose a minimum effective tax rate of 20 percent on an expanded measure of income including unrealized capital gains for households with net wealth above $100 million.
Credits, Deductions, and Exemptions:
Make the Child Tax Credit fully refundable on a permanent basis.
Increase the Child Tax Credit to $3,600 for young children and $3,000 for older children, make it fully refundable, and make other changes, on a temporary basis.
Increase the Earned Income Tax Credit for workers without qualifying children on a permanent basis.
Expand premium tax credits on a permanent basis.
Estate and Wealth Taxes:
Tighten rules related to the estate tax.
Excise Taxes:
Increase the stock buyback excise tax to 4 percent.
Individual Income Taxes:
Increase the net investment income tax and Medicare tax to reach 5 percent on income above $400,000.
Increase top individual income tax rate to 39.6 percent on income above $400,000 for single filers and $450,000 for joint filers.
Extend the expiring individual income tax changes from the 2017 Tax Cuts and Jobs Act (TCJA) for taxpayers making under $400,000.
Payroll Taxes:
No tax policies proposed
Tariffs and Trade:
Maintain the current Section 301 tariffs on roughly $360 billion worth of goods from China while raising tariffs on an additional $18 billion worth of steel, aluminum, and green energy and medical goods.
No tax policies proposed

Do you agree with these tax policies? Stay informed the more you know.

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