Joe Biden appears to be headed to the White House and will assume responsibility for the nation’s fiscal policy beginning in January of 2021. His tax agenda calls for, among other things, increasing rates on large corporations and upper-income individuals and limiting or eliminating some of the incentives currently available to these taxpayers. “A change in course” looks at Biden’s tax policy proposals, how they compare with current law, and how economic and political factors may influence what he can get enacted in the near term.
Tax policy implications of a Joe Biden presidency
Although the economic impact of the coronavirus pandemic dominated the fiscal policy debate during the general election campaign, one of the issues implicitly on the ballot was the fate of the tax code overhaul that congressional Republicans approved, and President Trump signed in 2017.
Joe Biden campaigned on the premise that the benefits of the 2017 law are skewed to large corporations and wealthy individuals and that the federal income tax system needs to be retooled to ensure that these taxpayers are paying “their fair share.” To that end, he has proposed to increase top income tax rates, limit or eliminate various incentives currently available to these taxpayers, and use the resulting revenue to pay for middle-class tax relief and spending priorities.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.