Overall, his proposals would raise $2.4 trillion over the next 10 years, according to the Tax Policy Center, which is a “significantly lower” estimate than the $4 trillion figure the group put forth in March.
The reason researchers’ revenue projection declined was because the latest analysis includes several recent tax credit proposals and some technical changes as more details have been released.
The group noted that the burden of Biden’s proposal to raise certain rates would fall predominantly on higher-income households, which would experience “substantial tax increases.”
Tax burdens would for households in the lowest two quintiles.
The updated analysis took into account Biden’s proposals through the end of September.
Biden and his running mate Sen. Kamala Harris, D-Calif., have repeated promises to repeal President Trump’s Tax Cuts and Jobs Act on day one should they secure the presidency.
Biden’s tax proposal would primarily target individuals earning $400,000 or more, including raising the personal income tax rate back up to 39.6%, from 37%.
Additionally, income above $400,000 would be subject to the 12.4 percent Social Security tax – split evenly between employees and employers. Currently, there is a wage cap of $137,700. Wages between those two ranges would not be taxed.
Another big change Biden wants to make is to tax capital gains at the same rate as ordinary income for households earning more than $1 million.
Wealthy Americans have also begun to rethink their estate planning strategies after Biden said he would lower the basic exclusion amount for the estate tax, which was roughly doubled under the 2017 tax reform law.
The former vice president also wants to raise the corporate tax rate to 28%, from 21%.