Wednesday, October 14, 2020
The American Enterprise Institute, a right-of-center think tank, has published a study of Biden's tax plan. Biden is not going to quadruple anybody's taxes, but he will increase the tax burden on the very rich. The richest 5 percent of taxpayers would bear almost the entire burden of Biden's plan, which would raise $2.8 trillion over the next decade, mostly by taxing people who own businesses directly, or through stock. But is Biden's plan to soak the rich going to hurt the economy? Not really. AEI finds that it would reduce Gross Domestic Product by 0.16 percent over the next decade, a trivial amount. Since those tax cuts will finance social investments " at least some of which will yield positive returns " it may well increase economic growth, while spreading the proceeds more equitably.
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