How Much Will Joe Biden’s Policy Cost?
Joe Biden said his presidency will make college and healthcare more accessible, while pushing the country towards more renewable energies. Sounds great! But these changes will cost over $ 3 trillion. And after months of criticizing other candidates’ plans as incomplete, Biden revealed his own plans. So let’s see.
At first glance, it seems that with his proposal, Uncle Joe is trying to recreate his vice presidency and the good old years of Obama. It will remove some of the tax breaks under the 2017 Tax and Employment Cuts Act and bring those taxes back to Obama-era levels. And unlike other candidates who want Medicare for everyone , he is unwilling to give up the existing healthcare system (also known as Obamacare) to start from scratch.
Biden is essentially positioning himself as one of the most moderate Democrats on the 2020 playing field. And while his plan is less exciting than Senator Warren and Sander’s plans to tax the rich and give almost everyone else, Biden’s proposal could be a more realistic shift after President Trump’s tax cuts.
According to Bloomberg News, which received a copy of the proposal, Biden plans to raise $ 400 billion over 10 years from corporate taxes alone. In total, he is proposing a $ 3.4 trillion increase in taxes to fund his policies.
Biden wants to spend money on several large lots:
He is a fan of the Affordable Care Act, which was passed when he was vice president, and wants to increase tax deductions to lower upfront costs for families who purchase coverage. He plans to cap insurance premiums for market plans to 8.5% of an individual’s income. According to The Washington Post, it will cost less than $ 1 trillion.
In higher education , Biden wants to make two years of community college or vocational school free for everyone, double the maximum federal Pell grant, and expand repayment options for federal student loans on an income basis. It will cost about $ 750 billion.
Biden also wants the federal government to invest $ 1.7 trillion in clean energy and environmental justice.
According to Bloomberg, this is how he would fund his plans:
$ 800 billion: Taxing capital gains as income for people with over $ 1 million.
$ 730 billion: Raise corporate tax rate to 28%. Before the tax cuts in 2017, it was 35%, and then it was reduced to 21%.
$ 440 billion: End the extended framework that regulates the value of assets transferred to the beneficiary to minimize their capital gains tax.
$ 400 billion: The introduction of a minimum corporate tax of 10%. Bloomberg explains that this will tax companies that reported net profits of over $ 100 million but paid zero (or negative!) Federal taxes due to interruptions in construction of facilities, pay for employees in a warehouse, or carry-over losses from unprofitable years.
$ 340 billion: Tax on foreign profits at a rate of 21%. This will double the current rate of 10.5% following the 2017 tax changes.
$ 310 Billion: Limiting Tax Credits for the Rich.
$ 200 billion: Tackling illegal tax havens in Ireland, the Netherlands, the Cayman Islands and Bermuda.
$ 90 billion: Raise the maximum personal income tax rate to 39.6%, returning the maximum rate it was before Trump’s tax cut.
$ 70 billion: Closing tax loopholes for real estate investors.
$ 40 billion: end of tax credits on fossil fuels .
If Biden’s $ 3.4 trillion plan doesn’t seem like a lot compared to some of the other candidates’ plans to fund their policies, it’s because … it doesn’t seem like much.
It’s not as high a plan as Sen. Elizabeth Warren said $ 52 trillion in Medicare for All, but there are some similarities. Biden and Warren both want to tax capital gains for the rich and fight tax evasion.
Senator Bernie Sanders’ plan to pay for his Medicare on all proposals also depends in part on cap tax deductions for the rich, taxing capital gains as income, and taxing offshore profits.