President-elect Joe Biden’s economic policy agenda could cost jobs, reduce growth and lower household income, according to a recent analysis by conservative think tank the Hoover Institution.
Researchers from the Hoover Institution project that Biden’s plans would reduce employment by 4.9 million individuals, trim GDP by $2.6 trillion and lower consumption by $1.5 trillion in 2030.
Median household income in 2030 would be $6,500 less by 2030.
There are three main pillars of the plan that will lead to these projected economic outcomes, including more input needed for electricity output due to plans to cut carbon emissions, expanding the Affordable Care Act and raising taxes on corporate income.
The Biden agenda includes a plan to cut carbon emissions to zero by 2035.
As previously reported by Fox News, in addition to personal income tax hikes on individuals earning more than $400,000, the president-elect wants to raise the corporate tax rate to 28% from 21%.
Researchers note that the economic effects could be more muted if the president-elect is not able to pass his entire economic agenda, which will largely depend on the partisan balance in Congress.
Biden’s has plucked three Democratic representatives from the House to serve in his administration, leaving the party with a delicate 219-member majority.
In the Senate, two Georgia runoff races will determine whether Republicans maintain their majority in the chamber. Democratic challengers Jon Ossoff and Rev. Raphael Warnock would both need to win their races to effectively lock the chamber in a 50-50 tie, which means Vice President-Elect Kamala Harris would cast the tiebreaking vote when necessary.
The Hoover’s Institution’s read is just one of many forecasts that have been put out about Biden’s economic and tax plans, all of which have had varying results.
The Penn Wharton Budget Model, for example, projects his agenda would have little effect on GDP.