Joe Biden pledges to roll back Trump's corporate tax cuts on 'day one,' saying it won't hurt businesses' ability to hire
Summary List PlacementDemocratic presidential candidate Joe Biden pledged in a CNN interview on Thursday to undo President Donald Trump's corporate tax cuts on "day one" of his presidency. But it may be difficult for Biden to stick to that ambitious timeline since overhauling the tax code requires Congress to act. Biden's tax plan includes a partial rollback of the GOP's tax cuts, raising it to 28% from its current level of 21%. "I'd make the changes on the corporate taxes on day one," he said. In the interview, he argued his proposal would help level the playing field between the wealthiest Americans and the middle class. "Stockholders are making more money because they go out and buy back their own stock," Biden told CNN's Jake Tapper. "They bought back over a trillion dollars of their own stock, raising the price of the stock. That's it — not hiring anybody else, not expanding their business, not investing in new enterprises."
“I’d make the changes on the corporate taxes on day one,” Joe Biden says. He says part of his plan includes lifting corporate income taxes to 28%. https://t.co/sJfRvMM8el pic.twitter.com/2VyAIqfcjL — The Lead CNN (@TheLeadCNN) September 10, 2020
He contended it wouldn't hurt businesses' ability to employ more people, and the added revenue would be used to fund priorities aimed at improving people's quality of life. "We've got to get people investing," Biden said. "So the idea that we take that money and put it into new investments in manufacturing, education, healthcare, these are the things that matter to middle-class families." Biden also repeated his promise to not increase taxes for Americans earning under $400,000. The former vice president's tax plans would raise $4 trillion in new federal revenue over a decade, according to an analysis from the Tax Policy Center. The think tank projected the corporate tax portion accounted for $1.3 trillion. Congress must step in with legislation to overhaul the tax code. Depending on which party controls the Senate, Biden's economic agenda may be either easier or significantly more difficult to carry out. Republicans currently hold the upper chamber, and their continued majority next year could thwart much of Biden's proposals before they get off the ground. Since its passage in December 2017, Trump championed the tax cuts as "rocket fuel" for the economy. A Business Insider analysis of the tax law around its two-year anniversary found the law spurred brief bursts of growth in business investment and GDP, though not enough to pay for itself as supporters claimed it would. Capital spending was on the downswing late last year, but stock buybacks had dramatically increased. Biden's remarks come as Trump increasingly tries shifting attention in the campaign towards the economy. Trump has consistently edged out Biden in polls gauging their ability to manage the economy over the summer, but that lead may be fading, The Washington Post reported. Though the US economy has recovered more swiftly than experts had expected, the US economy still has 11 million fewer jobs compared to February, a month before the pandemic broke out. The unemployment rate also stands at 8.2%, a high figure. On Tuesday, Biden unveiled a plan to slap penalties onto American companies that move their production and jobs overseas and then sell those products in the US.Join the conversation about this story » NOW WATCH: How waste is dealt with on the world's largest cruise ship
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Joseph R. Biden Jr. is pitching tax hikes on corporations and the rich. Many economists say...Joseph R. Biden Jr. is pitching tax hikes on corporations and the rich. Many economists say they won’t hurt growth. Some conservative economists — and President Trump — say they’ll crush the recovery.
It’s a myth that Republicans handle the economy better – US recessions almost always occur under...It’s a myth that Republicans handle the economy better – US recessions almost always occur under the GOPJoe Biden has consistently held a wide polling lead over US President Donald Trump ahead of November’s election. But, despite Trump’s botched response to the Covid-19 pandemic – a failure that has left the economy far weaker than it otherwise would have been – he has maintained a marginal edge on the question of which candidate would be better for the US economy. Thanks to Trump, a country with just 4% of the world’s population now accounts for more than 20% of total Covid-19 deaths – an utterly shameful outcome, given America’s advanced (albeit expensive) healthcare system.The presumption that Republicans are better than Democrats at economic stewardship is a longstanding myth that must be debunked. In our 1997 book, Political Cycles and the Macroeconomy, the late (and great) Alberto Alesina and I showed that Democratic administrations tend to preside over faster growth, lower unemployment and stronger stock markets than Republican presidents do. Continue reading...
Trump attacked Biden's economic plan as a huge tax hike for the middle-class. But most Americans wouldn't see their taxes directly increase.
Trump engaged in a barrage of inaccurate attacks on Democrats during his Thursday speech at the...Trump engaged in a barrage of inaccurate attacks on Democrats during his Thursday speech at the Republican National Convention. He said Biden's tax plan would raise taxes on "almost all American families," which would "totally collapse our rapidly improving economy." But experts across several think-tanks say most of the new taxes would fall squarely upon the highest earners, particularly the top 1% of households. Visit Business Insider's homepage for more stories. President Donald Trump accepted the Republican presidential nomination on Thursday evening in a 70-minute speech that constructed an alternate reality of his administration's management of the coronavirus pandemic. He glossed over the federal government's lapses during the crisis and engaged in a barrage of inaccurate attacks on Democrats. He portrayed his Democratic rival, Joe Biden, as a serious threat to the nation's economic recovery. The president blasted Biden's plan to revive the coronavirus-striken economy, saying it would increase taxes for the vast majority of Americans. "Joe Biden may claim he is an 'ally of the light,' but when it comes to his agenda, Biden wants to keep us completely in the dark," the president said, referring to the Democratic presidential nominee's acceptance speech last week. "He has pledged a $4 trillion tax hike on almost all American families, which will totally collapse our rapidly improving economy." However, Trump's attack on the Biden tax plan is misleading and not entirely grounded in reality. While economists do project Biden's tax plan would raise $4 trillion in new federal revenue over a decade, most of the burden falls squarely upon the highest earners — particularly the top 1% of households and not those in the middle class. Read more: RBC lays out 6 trades to make now ahead of a possible Democratic sweep in the elections — and says waiting until November is the wrong move It means most people wouldn't experience a direct tax increase if Biden beats Trump in November. Biden doubled down on his pledge to not raise taxes for people earning below $400,000 a year in an ABC News interview. The Committee for a Responsible Federal Budget recently analyzed Biden's tax plans through projections released by the non-partisan Tax Policy Center, the Penn Wharton Budget Model, the Tax Foundation, and American Enterprise Institute. The latter two think-tanks lean conservative. Through those four analyses, the CRFB estimated the top one-fifth of earners would experience a tax increase ranging from 2.3% to 5.7%. But most of that increase is "driven by a 13.0 to 17.8 percent increase for the top 1 percent." For taxpayers in the bottom four income quartiles, their taxes would increase by up to 0.6% in 2021, mostly because of Biden's intention to partially roll back Trump's tax cuts for large corporations, known as the Tax Cut and Jobs Act. "These increases are not due to direct taxes ... but rather the indirect effects of increasing corporate taxes, which all four estimators assume is partially born by workers," the organization said. Read more: MORGAN STANLEY: The government's recession response has the stock market heading for a massive upheaval. Here's your best strategy to capitalize on the shift. Put another way, most middle-income households could see their taxes indirectly go up by $260, while those in the top 1% see them swell by over $300,000, the Tax Policy Center estimated. Biden's tax proposals also wouldn't demolish the economy as Trump claimed. CRFB said it would likely "modestly shrink" its size in the long-run based on three of the analyses. By contrast, Trump's tax plan has been light on details. Ahead of the Republican National Convention this week, the Trump campaign released a second-term agenda with a 48-word section on "Jobs." It included specifics-free pledges to create 10 million jobs over 10 months and reduce taxes to boost take-home pay, among others. "Without further details or clarification, it is difficult to fully analyze President Trump's second term tax policy agenda," the Tax Foundation's Erica York said in a blog post analyzing the agenda. "Broad themes of the president's agenda include providing tax relief to individuals and tax credits to businesses that engage in desired activities, while the status of expiring [Tax Cut and Jobs Act] provisions and tariffs seems uncertain."Join the conversation about this story » NOW WATCH: How waste is dealt with on the world's largest cruise ship