• Democratic presidential nominee Joe Biden would enact policies that would raise taxes on individuals with income above $400,000, including raising individual income, capital gains, and payroll taxes.
• Biden has promised that for taxpayers at the higher levels of income above $400,000, the top individual tax will revert to 39.6%, up from 37%.
• Biden would extend the 12.4% portion of the Social Security tax — which is shared by both the employee and employer — to earnings over $400,000, the Tax Policy Center found. Currently, wages up to $137,700 are subject to the Social Security tax.
• Long-term capital gains will also be taxed at 39.6% on income above $1 million.
• He is calling to limit the value of itemized deductions – the write-offs households can take on expenses that include medical costs and charitable giving – to 28% for households with incomes exceeding $400,000, according to an analysis from the Tax Policy Center.
• Biden would raise taxes on corporations by raising the corporate income tax rate to 28% from 21% and imposing a corporate minimum tax.
• Biden would extend the 12.4% portion of the Social Security tax — which is shared by both the employee and employer — to earnings over $400,000, the Tax Policy Center found. Currently, wages up to $137,700 are subject to the Social Security tax.
• Biden plans for the elimination of the step-up basis for passing on assets to heirs, a provision in the tax code that allows heirs to receive assets valued as of the date of death. This means, an heir who sells the holding right away would pay little to no capital gains taxes on it. Instead, Biden’s proposal would tax unrealized capital gains at death, according to the Tax Policy Center’s analysis.
• Biden’s plan would bump the top estate tax rate to 45%, limit the amount people can pass on at death free of taxes to $3.5 million and limit the exclusion to $1 million for gift taxes, according to the Tax Policy Center.
• Lower income earners could see tax credits, including a temporary expansion of the child tax credit, boosting it to $3,000 for kids 17 and younger, plus a $600 bonus for children under six.
• Biden’s tax plan could lead to a 62% combined tax rate for high earners.
• On average, after-tax income for all taxpayers could fall by 1.7% in 2030, according to an analysis by the Tax Foundation.
• 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 the Tax Foundation’s original estimate due to the revenue effects of the coronavirus pandemic, 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 Gross Domestic Product (GDP) by 1.62% over the long-term.
• On a conventional basis, the Biden tax plan by 2030 would lead to about 7.7% less after-tax income for the top 1% of taxpayers and about a 1.9% decline in after-tax income for all taxpayers on average.

• An unspecified tax cut to boost take-home pay.
• An unspecified “Made in America” tax credit.
• Expanded opportunity zones in economically distressed areas.
• A temporary suspension of the payroll tax for workers earning less than $104,000 annually. Note that these funds would be due during the first four months of 2021.
• A middle-class tax cut which would reduce rates by 10% and reduce the 22% tax rate to 15%.
• Estate or gift taxes of 40%.
• Cutting the maximum capital gains rate to 15%. Currently, depending on income, an investor could face long-term capital gains tax rates of 0%, 15% or 20%.
• Indexing capital gains to inflation.
• Creating a capital gains tax holiday (for an undesignated period) which would carry a zero-tax rate.

• No change to existing law: 6.2% (employee’s share) up to maximum wage base ($137,700); employer pays a similar share. 1.45% Medicare tax full wage base (no cap) and a surtax of 0.9% on wages above $200,000 (couples $250,000).
• No change to the present 21% corporate tax rate.
• No change in 10.5% GILT (global intangible low-tax income) rate on foreign profits.