Our friends at the American Enterprise Institute have compiled an interesting analysis of Joe Biden’s tax proposals. They believe his plans would “raise federal revenue by $3.8 trillion over the next decade (2021- 30).” You can read the entire analysis HERE.
The AEI’s key points are below:
- Using the Tax-Calculator (2.9.0) microsimulation model, we estimate that Joe Biden’s proposals would raise federal revenue by $3.8 trillion over the next decade (2021–30).
- Biden’s proposals would increase taxes, on average, for households at every income level and make the federal tax code more progressive. His tax increases would primarily fall on the top 1 percent of income earners.
- Using the open-source OG-USA (0.6.2) model, we estimate that Biden’s proposals would reduce gross domestic product (GDP) by 0.06 percent over the next decade, slightly increase GDP the second decade (0.07 percent), and result in a small reduction in GDP in the long run (0.2 percent).
- Although his proposals would raise significant revenue, they would not significantly affect the federal government’s short-run and long-run debt burden.