Tax Foundation Biden Tax Plan Report: GDP drop of 1.62%

[NorthDallas40]

taxfoundation.org report on Biden’s tax plan predicts a GDP hit of 1.62%

Details and Analysis of Biden’s Tax Plan

Key Findings

• President-elect Joe Biden, according to the tax plan he released before the election, would enact a number of policies that would raise taxes on individuals with income above $400,000, including raising individual income, capital gains, and payroll taxes. Biden would also raise taxes on corporations by raising the corporate income tax rate and imposing a corporate minimum book tax.
• Biden’s plan would raise tax revenue by $3.3 trillion over the next decade on a conventional basis. When accounting for macroeconomic feedback effects, the plan would collect about $2.8 trillion the next decade. This is lower than we originally estimated due to the revenue effects of the coronavirus pandemic and economic downturn and new tax credit proposals introduced by the Biden campaign.
• According to the Tax Foundation’s General Equilibrium Model, the Biden tax plan would reduce GDP by 1.62 percent over the long term.
• On a conventional basis, the Biden tax plan by 2030 would lead to about 7.7 percent less after-tax income for the top 1 percent of taxpayers and about a 1.9 percent decline in after-tax income for all taxpayers on average.

 

[hog88]

taxfoundation.org report on Biden’s tax plan predicts a GDP hit of 1.62%

Details and Analysis of Biden’s Tax Plan

Key Findings

• President-elect Joe Biden, according to the tax plan he released before the election, would enact a number of policies that would raise taxes on individuals with income above $400,000, including raising individual income, capital gains, and payroll taxes. Biden would also raise taxes on corporations by raising the corporate income tax rate and imposing a corporate minimum book tax.
• Biden’s plan would raise tax revenue by $3.3 trillion over the next decade on a conventional basis. When accounting for macroeconomic feedback effects, the plan would collect about $2.8 trillion the next decade. This is lower than we originally estimated due to the revenue effects of the coronavirus pandemic and economic downturn and new tax credit proposals introduced by the Biden campaign.
• According to the Tax Foundation’s General Equilibrium Model, the Biden tax plan would reduce GDP by 1.62 percent over the long term.
• On a conventional basis, the Biden tax plan by 2030 would lead to about 7.7 percent less after-tax income for the top 1 percent of taxpayers and about a 1.9 percent decline in after-tax income for all taxpayers on average.

Completely biased and unreliable source.

 

[NorthDallas40]

Completely biased and unreliable source.

I’m guessing that was blue font? They are right center but factual reporting is high.

Tax Foundation - Media Bias/Fact Check

If the messengers message is right who cares what the messenger feels about it.

 

[1972 Grad]

Completely biased and unreliable source.

I don't know anything about the source, but economists' predictions are about as accurate as a long range weather forecast.

 

[NorthDallas40]

I don't know anything about the source, but economists' predictions are about as accurate as a long range weather forecast.

Lol ok I can’t argue that too much

 

[hog88]

I’m guessing that was blue font? They are right center but factual reporting is high.

Tax Foundation - Media Bias/Fact Check

If the messengers message is right who cares what the messenger feels about it.

It has to be biased and incorrect, Biden is going to save us from our self induced recession and the pandemic.

 

[NorthDallas40]

It has to be biased and incorrect, Biden is going to save us from our self induced recession and the pandemic.

Ah ok. Lol yeah we need to just stop resisting

 

[hog88]

Ah ok. Lol yeah we need to just stop resisting

Resistance is futile....

 

[UT_VOLS13]

What Janet Yellen as Treasury Secretary will mean for American taxpayers: Grover Norquist

 

[ajvol01]

taxfoundation.org report on Biden’s tax plan predicts a GDP hit of 1.62%

Details and Analysis of Biden’s Tax Plan

Key Findings

• President-elect Joe Biden, according to the tax plan he released before the election, would enact a number of policies that would raise taxes on individuals with income above $400,000, including raising individual income, capital gains, and payroll taxes. Biden would also raise taxes on corporations by raising the corporate income tax rate and imposing a corporate minimum book tax.
• Biden’s plan would raise tax revenue by $3.3 trillion over the next decade on a conventional basis. When accounting for macroeconomic feedback effects, the plan would collect about $2.8 trillion the next decade. This is lower than we originally estimated due to the revenue effects of the coronavirus pandemic and economic downturn and new tax credit proposals introduced by the Biden campaign.
• According to the Tax Foundation’s General Equilibrium Model, the Biden tax plan would reduce GDP by 1.62 percent over the long term.
• On a conventional basis, the Biden tax plan by 2030 would lead to about 7.7 percent less after-tax income for the top 1 percent of taxpayers and about a 1.9 percent decline in after-tax income for all taxpayers on average.

Just returning the US to Obama’s “new normal” where annual GDP growth is always less than 3%

 

[hog88]

What Janet Yellen as Treasury Secretary will mean for American taxpayers: Grover Norquist

She will be a disaster just as she was at the Fed.

 

[McDad]

What's their track record of predictions related to tax policy?

 

[NorthDallas40]

What's their track record of predictions related to tax policy?

No idea but I’m inclined to agree with 72’s appraisal of economists in general. Read the media bias link I dropped it gives their background. They have been around since 1937 and are a non partisan think tank tending more towards libertarian policy stances.

 

[1972 Grad]

No idea but I’m inclined to agree with 72’s appraisal of economists in general. Read the media bias link I dropped it gives their background. They have been around since 1937 and are a non partisan think tank tending more towards libertarian policy stances.

FWIW, I have an Econ degree from U.T. The main thing that I learned was that there were several different economic "theories", and much of the time, whatever was predicted to happen, didn't in the manner expected.

 

[lawgator1]

The Devil is in the details.

Our original analysis projected that the Biden tax plan would raise about $3.8 trillion conventionally over 10 years. The reduction in estimated revenue is due to two factors. First, the economic downturn driven by the coronavirus pandemic reduced expected revenue over the budget window, including revenue expected from tax increases. Second, the Biden campaign included new tax credit proposals, including a $105.5 billion expansion in the CTC, that reduced net revenue collections over the budget window.

The modeling includes the effects of the economic downturn caused by the virus. That has zilch to do with the Biden tax plan and is inevitable. Remember when Trump blew off the virus as no big deal when we had 11 total cases? Now we have almost 14 million cases and closing in on 300,000 dead. That's responsible for a huge part of the projected 1.6 GDP loss.

Gee, wonder why that is buried so far down and why this outfit makes it seem like the Biden plan is the source of the loss of 1.6 GDP, or at least does not account for what the loss would be had we handled the virus better on the front end or during the summer.

 

[NorthDallas40]

The Devil is in the details.




The modeling includes the effects of the economic downturn caused by the virus. That has zilch to do with the Biden tax plan and is inevitable. Remember when Trump blew off the virus as no big deal when we had 11 total cases? Now we have almost 14 million cases and closing in on 300,000 dead. That's responsible for a huge part of the projected 1.6 GDP loss.

Gee, wonder why that is buried so far down and why this outfit makes it seem like the Biden plan is the source of the loss of 1.6 GDP, or at least does not account for what the loss would be had we handled the virus better on the front end or during the summer.

Fail again “counselor” the GDP hit isnt contested in the paragraph you posted. In fact the key points I listed above cover it. Revenue increased but GDP and personal income both suffer. That’s the take away. They just updated their model to indicate that the revenue increase went to $2.8T from $3.3T

• Biden’s plan would raise tax revenue by $3.3 trillion over the next decade on a conventional basis. When accounting for macroeconomic feedback effects, the plan would collect about $2.8 trillion the next decade. This is lower than we originally estimated due to the revenue effects of the coronavirus pandemic and economic downturn and new tax credit proposals introduced by the Biden campaign.

 

[volinbham]

Fail again “counselor” the GDP hit isnt contested in the paragraph you posted. In fact the key points I listed above cover it. Revenue increased but GDP and personal income both suffer. That’s the take away. They just updated their model to indicate that the revenue increase went to $2.8T from $3.3T

• Biden’s plan would raise tax revenue by $3.3 trillion over the next decade on a conventional basis. When accounting for macroeconomic feedback effects, the plan would collect about $2.8 trillion the next decade. This is lower than we originally estimated due to the revenue effects of the coronavirus pandemic and economic downturn and new tax credit proposals introduced by the Biden campaign.

Apparently the distinction between tax revenues and GDP growth is lost on some.

 

[NorthDallas40]

Apparently the distinction between tax revenues and GDP growth is lost on some.

After the first year of the new admin I expect a revival of “maybe 2% growth is the new normal”

 

[lawgator1]

Fail again “counselor” the GDP hit isnt contested in the paragraph you posted. In fact the key points I listed above cover it. Revenue increased but GDP and personal income both suffer. That’s the take away. They just updated their model to indicate that the revenue increase went to $2.8T from $3.3T

• Biden’s plan would raise tax revenue by $3.3 trillion over the next decade on a conventional basis. When accounting for macroeconomic feedback effects, the plan would collect about $2.8 trillion the next decade. This is lower than we originally estimated due to the revenue effects of the coronavirus pandemic and economic downturn and new tax credit proposals introduced by the Biden campaign.

Apparently the distinction between tax revenues and GDP growth is lost on some.

Except that my point is that the premise for BOTH the lower GDP rate and for lower tax revenues is that the effects of the pandemic caused them to go back and re-run the numbers they had done before. It is when the effects of the pandemic are taken into account that we see lower GDP and therefore also lower tax revenues.

You guys tried the same trickery with Obama. Tried to saddle him with the effects of the Great Recession he inherited and made every effort you could to give the appearance (false) that it was his policies causing the downturn he inherited. Won't let you do that to Biden. Every time you try to pin on Biden some negative economic news, you need to include in the assessment what effect the pandemic had on that and, consequently, what might have been done under Trump and the GOP to avoid it.

 

[NorthDallas40]

Except that my point is that the premise for BOTH the lower GDP rate and for lower tax revenues is that the effects of the pandemic caused them to go back and re-run the numbers they had done before. It is when the effects of the pandemic are taken into account that we see lower GDP and therefore also lower tax revenues.

You guys tried the same trickery with Obama. Tried to saddle him with the effects of the Great Recession he inherited and made every effort you could to give the appearance (false) that it was his policies causing the downturn he inherited. Won't let you do that to Biden. Every time you try to pin on Biden some negative economic news, you need to include in the assessment what effect the pandemic had on that and, consequently, what might have been done under Trump and the GOP to avoid it.

You’re not helping your deflection case.

 

[GSD82]

Already setting up the talking points for when dementia patient 0 crashes the economy

 

[BeecherVol]

Except that my point is that the premise for BOTH the lower GDP rate and for lower tax revenues is that the effects of the pandemic caused them to go back and re-run the numbers they had done before. It is when the effects of the pandemic are taken into account that we see lower GDP and therefore also lower tax revenues.

You guys tried the same trickery with Obama. Tried to saddle him with the effects of the Great Recession he inherited and made every effort you could to give the appearance (false) that it was his policies causing the downturn he inherited. Won't let you do that to Biden. Every time you try to pin on Biden some negative economic news, you need to include in the assessment what effect the pandemic had on that and, consequently, what might have been done under Trump and the GOP to avoid it.

Basically when Biden fouls up its gonna be Trumps fault. Just the same as when Obama fouled up it was Bush.

LG, eventually the promises of great things falling short have something to do with those promising such.

 

[happy-go_vol]

The Devil is in the details.




The modeling includes the effects of the economic downturn caused by the virus. That has zilch to do with the Biden tax plan and is inevitable. Remember when Trump blew off the virus as no big deal when we had 11 total cases? Now we have almost 14 million cases and closing in on 300,000 dead. That's responsible for a huge part of the projected 1.6 GDP loss.

Gee, wonder why that is buried so far down and why this outfit makes it seem like the Biden plan is the source of the loss of 1.6 GDP, or at least does not account for what the loss would be had we handled the virus better on the front end or during the summer.

Lol, you blaming Trump for the spread of covid is like blaming him for the regular flu. It's just stupid. To say trump could have stopped it. Just like masks stops covid.

Harris is going to raise taxes when Americans need to keep their money the most. This is what socialists do.

 

[volinbham]

Except that my point is that the premise for BOTH the lower GDP rate and for lower tax revenues is that the effects of the pandemic caused them to go back and re-run the numbers they had done before. It is when the effects of the pandemic are taken into account that we see lower GDP and therefore also lower tax revenues.

You guys tried the same trickery with Obama. Tried to saddle him with the effects of the Great Recession he inherited and made every effort you could to give the appearance (false) that it was his policies causing the downturn he inherited. Won't let you do that to Biden. Every time you try to pin on Biden some negative economic news, you need to include in the assessment what effect the pandemic had on that and, consequently, what might have been done under Trump and the GOP to avoid it.

you realize the impact on GDP is comparing the Biden tax plan vs staying the course - the Covid impact hits both projections leaving the difference in GDP as a result of the tax plan. It's called comparative analysis.

if anything, Biden benefits from the Covid impact since the recovery has already started.

 

[lawgator1]

Lol, you blaming Trump for the spread of covid is like blaming him for the regular flu. It's just stupid. To say trump could have stopped it. Just like masks stops covid.

Harris is going to raise taxes when Americans need to keep their money the most. This is what socialists do.

Stop it, no, of course not.

Inhibit it, slow it down, reduce the spread. Absolufickinglutely, yes he could have. But he worried how it would make him look. And the further down the road of denial he went, the more he had to double down and deny it even more.