Understanding Biden’s and Democrats’ Tax Plans: Individual & Pass-through Business Taxes

Contact Your Elected Officials
Tax Foundation Logo

Throughout the year, the Biden administration and congressional Democrats have been fleshing out tax proposals as the budget reconciliation process heats up. With these expanded details, the Tax Foundation and other scorekeepers have released updated and more precise analysis.

To explain these proposals and help policymakers and taxpayers understand their impact on American businesses and families, we are hosting a Talking Tax Reform doubleheader.

Our first webinar discussion above took place on Thursday, September 9th at noon ET and focused on individual and pass-through business tax plans, which included:

— Raising the top marginal rate from 37 percent to 39.6 percent

— Taxing long-term capital gains as ordinary income for taxpayers with adjusted gross income above $1 million

— Taxing unrealized capital gains at death for unrealized gains above $1 million

— Phasing out the pass-through deduction for taxpayers earning over $400k and expanding eligibility for certain taxpayers under that amount

— Applying an additional 3.8 percent tax to active business income for taxpayers earning over $400k

Our discussion featured today’s leading tax policy experts and was moderated by Tax Foundation Vice President of Federal Projects Will McBride:

— Robert McClelland, Senior Fellow, Tax Policy Center

— Garrett Watson, Senior Policy Analyst, Tax Foundation

Tax Proposals By The Biden Administration

The Biden administration has announced a number of tax proposals to fund new government investments such as infrastructure, education and family programs.

From analyzing the American Jobs Plan and the American Families Plan to the U.S. Treasury’s international tax proposals, Tax Foundation experts continue to serve as trusted thought leaders, providing research, modeling, analysis, and commentary on how these new policies will impact U.S. competitiveness, economic growth, tax revenue, and everyday taxpayers.

The posts below include our research and analysis on a variety of recently announced tax proposals, including changes to individual income taxes, corporate taxes, international taxes, and capital gains taxes

By The Tax Foundation

Biden Doesn't Have Americans Best Interest At Heart