Democratic presidential nominee Joe Biden said if he wins the election in November, he will raise taxes on anyone making more than $400,000 a year.
Biden said his plan would include raising taxes on individuals as well as businesses that take in “close to a trillion dollars and pay no tax at all,” in a Sunday interview with ABC’s David Muir.
“I will raise taxes for anybody making over $400,000. Let me tell you why I’m going to do it. It’s about time they start paying their fair share of the economic responsibility we have. The very wealthy should pay a fair share-corporations should pay a fair share,” Biden said.
Muir pushed Biden on his plan, asking whether or not it’s sound to raise taxes on businesses as the economy struggles to recover from the pandemic lockdowns.
“It’s smart to tax businesses that in fact are making excessive amounts of money and paying no taxes,” Biden said.
Biden shot down any suggestion that he might raise taxes on small businesses.
“There will be no raising taxes” on the “90% of the businesses out there [that] are mom and pop businesses that employ less than 50 people,” Biden said. “We have to provide them with the ability to reopen. We have to provide more help for them, not less help.”
Biden’s proposal to raise taxes on those making more than $400,000 a year would raise tax revenue by $3.8 trillion over the next 10 years, according to an analysis by the Tax Foundation. The Tax Foundation says Biden’s plan would end up collecting approximately $3.2 trillion “when accounting for macroeconomic feedback effects.” They also said the Biden tax plan would reduce GDP by 1.51% over the long run. (RELATED: Biden Criticized Trump’s Order Cutting Payroll Tax. During The Recession, Obama Said It Would Be ‘Inexcusable’ To Block A Similar Tax Cut)
Biden said he would raise corporate taxes by 7% back to 28% in May. The corporate tax rate was cut down to 21% as part of Trump’s 2017 Tax Cuts and Jobs Act. Biden said he would repeal the president’s tax cuts as well.