Tag: October

Key Points

• Using the Tax-Calculator (3.0.0) microsimulation
  model, we estimate that Joe Biden’s propos­als would raise federal revenue by
  $2.8 trillion over the next decade (2021–30).
• The majority of new federal revenue would come
  from businesses and corporations ($1.9 tril­lion). The remaining revenue would
  come from individual income and payroll tax increases ($616.8 billion) and an
  increase in estate and gift taxes ($276.4 billion).
• In 2021, Biden’s proposals would increase taxes,
  on average, for the top 5 percent of households and reduce taxes on households
  in the bottom 95 percent. In 2030, Biden’s proposals would increase taxes, on
  average, for households at every income level, but 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
  0.16 percent over the next decade, slightly increase GDP the second decade
  (0.19