The Penn Wharton Budget Model (PWBM) has released a new non-partisan analysis on Joe Biden’s tax plan, estimating that a Biden presidency would generate $3.4T in tax revenue with 80 percent of the taxes falling “on the top 1 percent of the income distribution.”
Households with a median income of $400,000 per annum or less would “not see their taxes increase directly but would see lower investment returns and wages as a result of corporate tax increases” the report finds. It was further noted that people making $400,000 or less will see a decrease in after-tax income of about 0.9%.
Spending will increase by $5.37 trillion under the Biden plan, with the largest areas of spending in education at $1.9 trillion, as well as R&D and infrastructure at $1.6 trillion over a 10 year period.
The federal deficit will decline under the Biden tax plan
It is estimated that by 2050, the Biden tax plan will have decreased the federal debt by 6.1% while GDP will increase by 0.8% “relative to current law.” A new federal expenditure proposed by Biden is paid leave, known as the FAMILY Act, which is estimated to cost $547 billion over a similar 10 year period.