Former Vice President Joe Biden held a discussion at the Jewish Federation in Pittsburgh Thursday evening on how his tax plan for the United States would give families more money at a time when they’re struggling to find work and buy groceries.
The headline answer is, of course, no: A recently released tax plan would add $10 trillion in borrowing to the debt over the next decade, according to the Tax Policy Center, an independent research group in Washington.
On the one hand, that’s a huge increase in borrowing, which takes away money families could spend or save to help shore up the economy, because Biden’s plan would increase taxes on nearly every household in the United States by 2023. On the other hand, it’s also true that Biden’s plan – his long-awaited presidential campaign unveiled in June – is based largely on a strategy to increase revenue from corporations and to increase the government’s take from personal income taxes by allowing more wealthy people to pay at a lower rate.
In effect, Biden wants to increase the federal government’s tax take by raising taxes on companies and rich people, whose taxes are already pretty high. And then, he hopes, those people will earn more in, say, next year, paying a smaller share of their income in taxes, creating a further increase in revenue, which would help fund his plan.
“They’ll realize that making more money, that’s what they’re supposed to do,” he said at the Jewish Federation event.
Biden’s advisers are quick to point out that, under current law, corporate taxes are set to decrease, which means that, unlike the Trump administration, Biden doesn’t intend to raise taxes on companies. Biden’s plan would effectively raise the corporate tax rate, which currently sits at 35 percent. Biden’s plan would bring the corporate tax rate to 22 percent, which would be a high rate but not the highest. His advisers say the change could help create jobs by encouraging companies to hire more people and more expand their operations.
“I come at this from the perspective of a big shareholder, not from the perspective of a big boardroom,” Biden said at the Jewish Federation event. “It’s a classic corporate tax strategy – bring your money in, cut the tax rate, then take it back out and grow.”