Joe Biden has spelled out which taxes he would raise to pay for his policy priorities if he's elected president, a $3.2 trillion list that would have the wealthy and corporations paying more to the IRS.
On the business side, the former vice president proposes to raise the corporate tax rate from 21 percent to 28 percent and to place a minimum tax on companies’ pre-tax income, as a way to ensure that large multinational corporations pay at least something.
Biden would also seek to curb the ability of corporations to shift profits offshore, by sanctioning countries that facilitate tax avoidance. He didn't identify which of the numerous countries known to have business-friendly tax policies would be targeted by such a plan.
And Biden would double a global minimum tax on offshore corporate income from the GOP tax law enacted in 2017, H.R. 1 (115), known as the levy on Global Intangible Low-Taxed Income, or GILTI, from 10.5 percent to 21 percent.
The tax proposals from Biden, first reported by Bloomberg News, are certainly more modest than those of other leading contenders for the Democratic nomination, notably Sens. Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.).
Both Warren and Sanders have proposed wealth taxes that would by themselves raise in the neighborhood or even more than Biden’s entire tax platform, in addition to a range of other tax increases on the wealthy and business community.
Biden’s camp said he was leveling with voters about how he would pay for new policies aimed at combating climate change, and expanding access to higher education and health care, after he accused rivals of falling short in that area.
“He believes that being forthright with voters about how plans would be financed is critical to building the public support necessary to beat Donald Trump, help more Democrats win up and down the ballot, and then pass legislation through Congress,” said Stef Feldman, Biden’s policy director.
For individuals, Biden proposes to raise the top rate from 37 percent to 39.6 percent — which was the rate after the fiscal cliff deal that the then-vice president negotiated with then-Senate Minority Leader Mitch McConnell (R-Ky.) almost seven years ago.
Biden would also tax capital gains and dividends, which now face a top rate of 23.8 percent when including levies in Obamacare, at the same rate as ordinary income for those earning at least seven figures.
And he would bring back a couple of other proposals from the Obama era — capping the value of tax breaks for the rich at 28 percent and ending the so-called step up in basis, which allows wealthy taxpayers to avoid paying taxes on assets passed on at death.