Biden's Tax Plan

Overview

Although quantitative analysis is necessarily subject to considerable uncertainty, many commentators estimate that Biden's tax plan would raise federal revenues by $2 trillion to $2.5 trillion over the next decade. Approximately two-thirds of this would be from tax increases on businesses and one-third from tax increases on high-income households.

Whether the Biden tax plan will be enacted is a function of the circumstances when Biden takes office. The appetite for tax reform will, in part, depend on the economic recovery from COVID-19 and the composition of the Senate. While the Senate typically requires 60 of 100 votes to pass legislation, simple majorities have previously been used to pass significant legislation on largely partisan lines, such as the ACA under Obama and the TCJA under Trump.