Trump, Biden and a tale of two tax plans in 2020
The president is promising more tax cuts, his Democratic challenger is promising to tax the rich
{{#rendered}} {{/rendered}}Two very different tax plans are being presented to voters in 2020.
“You can't have your tax increase, so I'm cutting taxes,” President Trump told supporters at a recent rally.
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{{#rendered}} {{/rendered}}The comment was not only a reference to the tax cuts President Trump is proposing in his economic plan, but also the tax hikes that his challenger has outlined.
A Fox Business Network comparison of the two plans notes that while there is no formal outline for his tax agenda, the Trump campaign claims that President Trump's goals for a second term include proposing further cuts beyond those passed under the Tax Cuts and Jobs Act in 2017 in order to boost take-home pay and keep jobs in America.
Former Vice President Biden’s campaign has made a point of repeating its promise that, if elected president, he “will not increase taxes on anyone making less than four hundred thousand dollars” annually.
{{#rendered}} {{/rendered}}According to his incumbent opponent, however, Biden's $4 trillion dollar tax increase "is a missile aimed at the heart of the middle class."
Biden argues that his statements about his admitted tax hikes have been taken “out of context,” but admits that his plan is to start making wealthy Americans, as well as large corporations, start paying their “fair share.”
The Democratic plan is to bring the tax rate from 37% to a pre-Trump rate of 39.6% for those at the top of the individual federal income tax brackets. Corporate tax rates would jump as well, from 21% to 28%, and people earning more than $400,000 annually will, as promised, have to pay additional payroll taxes.
{{#rendered}} {{/rendered}}NFL GREAT BRETT FAVRE THROWS HIS SUPPORT TOWARD TRUMP
In a recent interview, Biden described his changes as “righting the tax code,” and maintained that tax hikes during an economic recovery is a good idea “depending on who you’re raising them on."
President Trump has also been pressed on the tax cuts he has made for corporations, with one voter arguing at a recent televised town hall “a lot of Americans think that corporations don't pay their share of taxes and want to see those tax rates increase.”
{{#rendered}} {{/rendered}}“Our corporate taxes were the highest in the world,” the President fired back. “Now, they're among the lower taxes… and what that means is jobs,” he argued.
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The Biden campaign has been touting a review of its economic plan by Wall Street analysis firm Moody’s, which argued that “Biden’s economic proposals would result in a stronger U.S. economy than Trump’s.” The non-profit Tax Foundation noted in its analysis of the democratic agenda that would likely shrink the size of the U.S. economy by 1.62% in the long-run due to marginal tax rates.
{{#rendered}} {{/rendered}}A Fox Business Network comparison of the two plans notes that while there is no formal outline for his tax agenda, the Trump campaign claims that President Trump's goals for a second term include proposing further cuts beyond those passed under the Tax Cuts and Jobs Act in 2017 in order to boost take-home pay and keep jobs in America.
President Trump's extension of provisions in the Tax Cuts and Jobs Act would reportedly reduce taxes by about $1.1 trillion from 2021 through 2030, according to an analysis by the Tax Policy Center.
Fox Business Network’s Lucas Manfredi contributed to this report.