Biden's tax plan could cost biggest US banks $7B per year

Biden has pledged to raise the corporate tax rate from 21% to 28%

Democratic presidential candidate Joe Biden's plan to hike taxes on corporations could cost the nation's biggest banks billions each year.

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That's according to a new S&P Global Market Intelligence analysis, which found that the 10 biggest banks in the U.S. could see their collective annual net income drop by more than $7 billion. S&P Global calculated the figure using the mean of equity analysts' estimates for 2021.

For 209 publicly traded banks, S&P Global said a tax rate of 28% would reduce the aggregate annual income by roughly $9.36 billion.

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Biden has pledged to raise the corporate tax rate from 21% to 28%, which he said is projected to raise $1.3 trillion over the next decade. The Trump administration permanently slashed the corporate tax rate from 35%  to 21% with the passage of the 2017 Tax Cuts and Jobs Act.

Since the law was enacted, the nation's top six banks have saved a combined total of $32 billion, according to a Bloomberg analysis.

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"I'd make the changes on the corporate taxes on day one," Biden told CNN's Jake Tapper last week when asked whether he would wait for joblessness to decline. "And the reason I'd make the changes to corporate taxes, it can raise $1.3 trillion if they just started paying 28% instead of 21%. What are they doing? They're not hiring more people."

Biden said the money raised from the tax hike would be put toward manufacturing, education and health care, arguing "these are things that matter to middle-class families."

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Still, the Constitution gives Congress the power to set tax policy, so Biden's economic agenda may hinge on whether Democrats win a majority in both the House and Senate.

In order to take back the Senate, Democrats would need to pick up three additional seats and win the White House.

"Wall Street's been bailed out twice and Vice President Biden believes that it's long overdue for them to pay their fair share," Mike Gwin, deputy rapid response director for the Biden campaign, told FOX Business.

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