Biden’s tax increases on high-income earners and corporations would do little to slow the economy. TPC’s Ben Page explains a new TPC report that finds Democratic presidential candidate Joe Biden’s tax agenda would have little effect on the growth path of the economy. “And those small economic effects would only modestly reduce the total amount of revenue his proposals would collect if enacted.”
President Trump would continue to cut taxes, especially for high-income households. TPC’s Mark Mazur reports on TPC’s estimates of Trump’s proposal to permanently extend the Tax Cuts and Jobs Act’s individual income and estate tax provisions. Retaining those provisions—now scheduled to expire in 2025—would reduce federal revenues by $1.1 trillion from 2021 through 2030. The top 0.1 percent of taxpayers (who will earn over $3.7 million in 2026) would see their taxes fall by about $71,000 in 2026, while middle-income households would receive a tax cut of about $860. Taxpayers earning less than $26,300 would get a tax cut of $80.
Trump wants to overturn the Affordable Care Act, cutting taxes for high-income households. TPC’s Gordon Mermin reviews the tax outcomes if the US Supreme Court overturns the ACA, as the president has requested. An updated TPC analysis estimates that reversing the ACA would cut taxes in 2022 by $30 billion to $35 billion. More than two-thirds of the benefits would go to households in the top one percent of income (earning more than $788,000).
But both candidates support a modest middle-income tax cut. TPC’s Howard Gleckman reviews the differences between the two candidate’s tax agendas. “For all the partisan shouting, it turns out that both Trump and Biden would cut average taxes for middle-income households by roughly the same relatively modest amount…” The big difference: Biden’s tax cuts are a bit smaller and temporary but would take effect in 2022. Trump’s are permanent and slightly bigger but would not take effect until 2026.
McConnell and Pelosi see different post-election paths for coronavirus legislation. Senate Majority Leader Mitch McConnell says Congress won’t act on another relief package until 2021, while House Speaker Nancy Pelosi wants to get a deal done in the lame-duck session. Much will depend on the election outcome.
In case you missed The Prescription. TPC’s Howard Gleckman talked with Ohio Senator Rob Portman. Breaking with McConnell, Portman urged Congress to pass a stimulus bill right after the election. Separately, Portman, a key player on IRS issues, said he’d support an increase in the agency’s budget.
A century of real estate tax breaks and President Trump. The New York Times continues its reporting on President Donald Trump’s taxes. Its most recent installment examines how the real estate industry has enjoyed favorable tax treatment and how deducting real estate and other capital costs helped Trump sharply reduce his taxes.
Will Californians vote tomorrow to raise commercial and industrial property taxes? TPC’s Richard Auxier, Tracy Gordon, and Kim Rueben compare Proposition 15, which is on the California ballot tomorrow, with the historic Proposition 13, which capped California property taxes 40 years ago. Prop 15 is designed to rebalance the states’ revenue mix and add between $6.5 billion to $11.5 billion in annual tax revenue.
Other state ballot measures. TPC’s Richard Auxier offers a guide to tomorrow’s votes on income taxes, sales taxes, property taxes, and a variety of sin taxes.
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