Since the media seems more focused on other topics, I'm launching a new recurring feature: Biden v. Trump on the actual issues -- what they did as president and what they would try to do in a second term.
First up: taxes. 1/
One of the few pieces of legislation Trump passed as president was the 2017 Tax Cuts and Jobs Act (TCJA). The centerpiece of that bill was a massive, permanent reduction in the corporate tax rate from 35% to 21%. 2/
Trump’s chief economist claimed that the corporate tax cut would increase wages for the typical household by as much as $9000. That became one of the central GOP talking points as they tried to push the bill through Congress. 3/
cnbc.com/2017/10/16/whi…
That claim turned out to be completely false. A new study from nonpartisan experts found that almost all the corporate tax cut benefits went to high-income executives and shareholders, and the bottom 90% of workers got almost no benefit. 4/
equitablegrowth.org/six-years-late…
The bill also didn’t generate a promised surge in business investment. Recent research found minimal impact on corporate investment. 5/
taxpolicycenter.org/publications/t…
In addition to the corporate tax cut, the Trump tax bill made a variety of changes to individual taxes that delivered huge cuts to rich households. The richest 1% got a $50,000 annual tax cut, while most of the poorest households got nothing. 6/
taxpolicycenter.org/publications/e…
The Trump tax bill also increased the deficit – hugely. By nearly $2 trillion, according to the nonpartisan Congressional Budget Office. 6/
taxpolicycenter.org/briefing-book/…
Biden took the took the opposite approach. He pushed for tax increases on the rich and large corporations to help offset the cost of investments in housing, child care affordability, clean energy production, and more. 7/
nytimes.com/2021/05/28/us/…
Despite narrow majorities in Congress, Biden succeeded in getting more revenue from large corporations. He enacted a new minimum tax on big corporations to ensure that no profitable corporation pays zero federal income taxes. 8/
cnbc.com/2022/08/16/wat…
Biden also passed a new tax on corporate stock buybacks, bringing in new corporate tax revenue and also potentially encouraging companies to dedicate earnings to investment rather than buybacks. 9/
apnews.com/article/biden-…
So what would a second term tax agenda look like for Trump and Biden? Trump is exploring even more corporate tax cuts, dropping the rate from 21% to 15%. 10/
washingtonpost.com/business/2023/…
Trump and his allies in Congress are also looking to extend a variety of individual tax cuts from the 2017 tax bill, which would deliver an average tax cut of $70,000 a year to a family making $3.7 million annually. 11/
taxpolicycenter.org/taxvox/permane…
While Trump would seek to extend and expand tax cuts that overwhelmingly benefit large corporations and the wealthy, Biden is looking to raise even more revenue from those groups, including with a new minimum tax on billionaires. 12/
vox.com/money/23634085…
Meanwhile, Biden has been clear that he will not support any tax increase on anyone making under $400,000 and has sought to extend and expand tax cuts for middle-class parents with younger kids. 13/
reuters.com/markets/us/bid…
Those are the concrete stakes of the 2024 election on tax policy. The election results will likely mean trillions of dollars in difference in tax policy alone. The candidates have been clear about their intentions.
Up next week on Biden v. Trump on the issues: higher education.
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