President Trump vowed to continue lowering taxes if he defeats Democratic challenger Joe Biden on Nov. 3, tweeting from the Walter Reed National Medical Center on Monday morning that his administration would pass a sequel to the 2017 tax overhaul.
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"BIGGEST TAX CUT EVER, AND ANOTHER ONE COMING. VOTE!" Trump wrote in a series of tweets from Walter Reed, where he's been staying since Friday to undergo treatments for COVID-19.
"IF YOU WANT A MASSIVE TAX INCREASE, THE BIGGEST IN THE HISTORY OF OUR COUNTRY (AND ONE THAT WILL SHUT OUR ECONOMY AND JOBS DOWN), VOTE DEMOCRAT!!!" he wrote in another tweet.
Trump, who presided over the passage of the Tax Cuts and Jobs Act in 2017, the biggest overhaul of the tax code since Ronald Reagan was in the Oval Office, has repeatedly pledged a follow-up, often referred to as "Tax Cuts 2.0."
It's unclear exactly what it would include, but the president has previously said he would cut the top capital gains tax rate to 15% from 20%; forgive temporarily deferred payroll taxes; give tax breaks to U.S. companies that bring their operations back from China; and codify changes made in the previous tax overhaul that are slated to sunset in 2025.
Biden, meanwhile, is running on a multitrillion-dollar agenda that would be funded in large part by higher taxes on wealthy U.S. households – which he describes as anyone earning more than $400,000 annually – and corporations. That includes higher income tax rates, an expansion of the payroll tax for Social Security, new tax credits and fewer deductions.
“I will raise taxes for anybody making over $400,000,” Biden said during a recent interview with ABC's David Muir. “Let me tell you why I'm going to do it. It’s about time they start paying a fair share of the economic responsibility we have. The very wealthy should pay a fair share – corporations should pay a fair share.”
Almost 80% of the tax increases backed by Biden would land on the top 1% of earners in the U.S., according to a projection in September from the Penn Wharton Budget Model, a nonpartisan group at the University of Pennsylvania's Wharton School.
Biden has promised to roll back Trump's 2017 Tax Cuts and Jobs Act and raise the corporate tax rate to 28% from 21%, restore the top individual tax rate to 39.6% from 37%, tax capital gains as ordinary income, cap deductions for high earners, expand the Earned Income Tax Credit for workers over the age of 65 and impose the Social Security payroll tax on wages above $400,000.
Still, the Constitution gives Congress the power to set tax policy, so both Biden and Trump's economic agenda may hinge on which party controls a majority in the House and Senate.