Joe Biden’s COVID-19 Plan and Tax Plan ? Details and Analysis

Joe Biden covid 19 plan – “The president still has no plans,” Biden argued. But does  Biden?

Biden gave a speech on his COVID-19 plan on October 23 and he and Senator Kamala Harris circulated a seven-point plan for running, calling “beat [COVID-19]” and “ting” back on track. be brought. “This expert, says Eric Toner, a senior scholar at the Johns Hopkins Center for Health Security, says what he has done since the epidemic began – but” a description of the real devil “. Everything down to execution and nuance And on that front, it is too early to say how things will be if Biden is elected.

Joe Biden’s COVID-19 Plan

Most of the Biden / Harris plan is unlikely to cause wings to erupt among health experts. The seven points include:

• We need to double the number of test sites in the UK to test the number of people currently tested per day; Invest in fast and home testing; Creating an epidemic test board to monitor test production; And creating a 100,000-person national contact tracing workforce that will collaborate with community groups.
•     To begin the production of personal protective equipment such as masks and face shields.
•     Working with the American Centers for Disease Control and Prevention to produce clear guidance for businesses, schools and state and local governments, trying to reopen businesses, schools and other facilities with government money.
•     Creating a vaccine production-and-distribution plan (and a $ 25 billion investment) that ensures free and equitable access, while allowing scientists to clearly communicate progress with the public.
•     Protect vulnerable populations like the elderly and people of color through the COVID-19 Racial and Ethnic Inequality Task Force, and publish a real-time data dashboard that provides local information about the outbreak.
•     Restoring the White House office responsible for monitoring global health risks, which Trump dissolved in its original form in 2018, and joined the World Health Organization, among other efforts to strengthen America’s global health response .
•     Encouraging universal masking by urging governors and local MPs to implement mandates.

Reading the plan, “What would have happened if we had done all this during an epidemic?” Says Leena Wayne. George Washington University Milken School of Public Health.

President-elect Joe Biden’s Tax Plan

Key

• President-elect Joe Biden, according to the tax plan released before the election, would implement a range of policies, including raising personal income, capital gains, and payroll taxes to tax individuals with incomes above $ 400,000. Biden will also raise taxes on corporations by raising the corporate income tax rate and imposing a corporate minimum book tax.
•     Biden’s plan would increase tax revenue by $ 3.3 trillion over the next decade on a traditional basis. When accounting for macroeconomic feedback effects, the plan would collect approximately $ 2.8 trillion over the next decade. This is basically lower than anticipated due to the economic impact and economic decline of the coronovirus epidemic and new tax credit proposals initiated by the Biden campaign.
•     According to the General Equilibrium Model of the Tax Foundation, the Biden tax plan will reduce GDP by 1.62 percent in the long run.
•     On a traditional basis, by 2030, the Biden tax plan would reduce tax-income by about 7.7 percent for the top 1 percent of taxpayers, and a 1.9 percent drop in tax-income for all taxpayers on average.

Estimated Distributional Effect of Biden’s Tax Plan

Income Group	Conventional, 2021	Conventional, 2030	Dynamic, long-run
0% to 20%	10.8%	-0.2%	-1.2%
20% to 40%	3.6%	-0.2%	-1.2%
40% to 60%	1.4%	-0.3%	-1.3%
60% to 80%	0.6%	-0.5%	-1.4%
80% to 100%	-3.9%	-3.0%	-3.8%
80% to 90%	0.1%	-0.6%	-1.5%
90% to 95%	-0.2%	-0.7%	-1.6%
95% to 99%	-1.3%	-1.1%	-2.1%
99% to 100%	-11.3%	-7.7%	-8.9%
TOTAL	-1.2%	-1.9%	-2.8%
Source: Tax Foundation General Equilibrium Model, October 2020.

Description of Biden Tax Plan

Biden’s plan includes the following payroll taxes, personal income tax and property and gift tax changes:

•     The 12.4 percent Old-Age, Survivors, and Disability Insurance (Social Security) payroll tax on incomes above $ 400,000,000 is evenly split between employers and employees. This would create a “donut hole” in the current Social Security payroll tax, where wages between $ 137,700, current salary cap, and $ 400,000 are not taxed. [1]
•     Carries the top personal income tax rate for taxable income from 37% above $ 400,000 to the prior level of tax-deductions under current law and 39.6 percent of the Jobs Act.
•     Eliminates the step-by-step for taxing long-term capital gains and qualified dividends and capital gains taxation at a simple income tax rate of 39.6 percent on income above $ 1 million. [2]
•     For those earning more than $ 400,000, 28 percent of the itemized deduction benefits tax benefits, meaning that taxpayers earning above that income threshold with tax rates above 28 percent face limited itemized deductions. Will have to.
•     Restores payment limits on itemized deductions for taxable income above $ 400,000.
•     Eliminates qualified business income deductions (section 199A) for filers with taxable income in excess of $ 400,000.
•     Extension of Earned Income Tax Credit (EITC) for disabled workers aged 65+; Provides renewable-energy-related tax credits to individuals.
•     The Child and Dependent Care Tax Credit (CDCTC) extends a maximum of $ 3,000 to $ 8,000 in qualified expenses ($ 16,000 for many dependents) and increases the maximum reimbursement rate from 35 percent to 50 percent.
•     For 2021 and as long as economic conditions require, the child tax credit (CTC) maximum value increases from $ 2,000 to $ 3,000 for children 17 or younger, while children under 6. CTC will also be fully made providing a bonus credit of $ 600. Refundable, removing $ 2,500 reimbursement limit and 15 percent step rate. [3]
•     First-time homebuyers reestablish the tax credit, which was originally created during the Great Recession to help the housing market. For the first time homebuyers will provide up to $ 15,000 of Biden’s homebuyers credit. [4]
•     Expands property and gift tax by restoring rate and exemption to 2009 levels.

Biden’s plan also includes the following proposed business tax changes:

•     The corporate income tax rate has been increased from 21 percent to 28 percent. [5]
•     Creates a minimum tax on corporations with book profits of $ 100 million or more. The minimum tax is structured as an optional minimum tax – corporations will pay more of their regular corporate income tax or 15 percent minimum tax while still allowing for net operating loss (NOL) and foreign tax credits. [4]
•     Double the tax rate on global intangible lower tax income (GILTI) earned by foreign subsidiaries of US companies from 10.5% to 21 percent.
•     In addition to doubling the assessed tax rate on GILTI, Biden proposes to assess GILTI on a country-by-country basis and eliminate GILTI’s exemption under 10 percent of Eligible Business Asset Investment (QBAI). [7]
•     Establishes a manufacturing community tax credit to reduce the tax liability of businesses experiencing workforce layoffs or closure of a major government institution
•     New Market extends the tax credit and makes it permanent.
•     The workplace provides tax credits to small business to adopt retirement savings plans.
•     Expands a number of renewable-energy-related tax credits, including carbon renewal, use, and storage, as well as credits for residential energy efficiency and the restoration of the Energy Investment Tax Credit (ITC) and the Electric Vehicle Tax Credit. The Biden plan would also eliminate tax subsidies for fossil fuels.

Economic Effect of Biden’s Tax Plan

Gross Domestic Product (GDP)	-1.62%
Capital stock	-3.75%
Wage rate	-1.15%
Full-time Equivalent Jobs	-542,000
Source: Tax Foundation General Equilibrium Model, October 2020.

Effect of Biden’s Tax Plan on Gross National Product

Gross Domestic Product (GDP)	-1.62%
Gross National Product (GNP)	-1.83%
Source: Tax Foundation General Equilibrium Model, October 2020.

onventional and Preliminary Dynamic Revenue Effect of Biden’s Tax Plans (Billions of Dollars)

Proposal	2021	2023	2023	2023	2025	2026	2027	2028	2029	2030	2021-2030
1. Apply a Social Security payroll tax of 12.4% to earnings above $400,000	$73.2	$78.5	$81.3	$80.7	$79.5	$80.8	$83.9	$87.1	$88.1	$86.8	$819.9
2. Raise the top ordinary income tax rate from 37% to 39.6%	$25.1	$29.0	$30.4	$31.1	$32.5	$0.0	$0.0	$0.0	$0.0	$0.0	$148.1
3. Reactivate the Pease limitation for income above $400,000	$16.2	$18.8	$19.7	$20.4	$21.4	$0.0	$0.0	$0.0	$0.0	$0.0	$96.6
4. Tax capital gains and dividends at 39.6 percent on income over $1 million and repeal step-up in basis	$14.2	$27.1	$39.5	$42.1	$45.8	$49.5	$56.9	$61.8	$64.8	$67.6	$469.4
5. Limit the tax benefit of itemized deductions at 28% of value for those earning over $400,000	$23.7	$27.7	$28.9	$29.7	$31.2	$25.3	$27.7	$28.7	$29.7	$31.0	$283.5
6. Phase out qualified business income deductions for income over $400,000	$29.9	$34.4	$35.8	$37.3	$39.6	$0.0	$0.0	$0.0	$0.0	$0.0	$177.1
7. Expand the Child Tax Credit (CTC) to $3,000 maximum value, $600 bonus for children under 6, and make the CTC fully refundable with no phase-in thresholds	-$105.5	$0.0	$0.0	$0.0	$0.0	$0.0	$0.0	$0.0	$0.0	$0.0	-$105.5
8. Expand the Child and Dependent Care Tax Credit (CDCTC) to a maximum value of $8,000 and increase the refundability percentage to a maximum of 50 percent	-$6.0	-$7.0	-$7.2	-$7.5	-$7.9	-$8.3	-$8.7	-$9.0	-$9.4	-$9.7	-$80.7
9. Provide a First-Time Homebuyer Credit up to $15,000 in value	-$12.0	-$14.0	-$14.5	-$15.0	-$15.9	-$16.9	-$17.8	-$18.8	-$19.4	-$20.2	-$164.6
10. Restore the gift and estate tax to 2009 levels	$26.5	$28.3	$30.0	$30.9	$32.4	$31.1	$25.5	$24.1	$25.5	$26.5	$280.7
11. Raise the corporate income tax rate to 28%	$40.9	$78.0	$96.0	$106.3	$115.8	$117.4	$118.5	$122.7	$125.8	$128.9	$1,050.8
12. Impose a 15 percent corporate minimum tax on book income	$7.9	$15.1	$18.6	$20.5	$22.3	$22.7	$22.9	$23.7	$24.3	$24.9	$202.7
13. Double the tax rate on GILTI, eliminate the exemption for deemed returns to QBAI, and impose GILTI on a country-by-country basis	$16.0	$29.5	$34.7	$39.2	$43.1	$28.5	$26.9	$26.3	$24.3	$21.2	$289.7
14. Miscellaneous credits	-$6.6	-$9.1	-$11.0	-$11.8	-$12.9	-$14.7	-$15.7	-$16.6	-$17.5	-$18.4	-$134.3
Total Conventional Revenue	$143	$336	$382	$404	$427	$315	$320	$330	$336	$339	$3,333
Total Dynamic Revenue	$129	$284	$314	$343	$358	$306	$267	$260	$262	$259	$2,782
Source: Tax Foundation General Equilibrium Model, October 2020. Items may not sum due to rounding.

Distributional Effect of Biden’s Tax Plan

Income Group	Conventional, 2021	Conventional, 2030	Dynamic, long-run
0% to 20%	10.8%	-0.2%	-1.2%
20% to 40%	3.6%	-0.2%	-1.2%
40% to 60%	1.4%	-0.3%	-1.3%
60% to 80%	0.6%	-0.5%	-1.4%
80% to 100%	-3.9%	-3.0%	-3.8%
80% to 90%	0.1%	-0.6%	-1.5%
90% to 95%	-0.2%	-0.7%	-1.6%
95% to 99%	-1.3%	-1.1%	-2.1%
99% to 100%	-11.3%	-7.7%	-8.9%
TOTAL	-1.2%	-1.9%	-2.8%
Source: Tax Foundation General Equilibrium Model, October 2020.

Joe Biden Campaign, “A Tale of Two Tax Policies: Trump Rewards Wealth, Biden Rewards Work,” https://joebiden.com/two-tax-policies/.

“Made in America” ​​plan

As much as the world waits to see that the 46th President of the United States, Joseph R. How Biden Jr. reconfigured American foreign policy would be the focus of the new administration in Washington in its first 100 days, as would be the case with the new government, essentially domestic affairs in any country.

All of this would be more true for Mr. Biden, who leads amidst a raging epidemic and enormous economic challenges.

Facing these economic challenges at home, however, hinges on whether the Biden administration will be able to properly achieve an important relationship – ties relations with China into outright confrontations, and for many observers, now A abyss on the edge of the tether.

The “Made in America” ​​plan states that his administration will “stand up to the abuses of the Chinese government” and “insist on fair trade”, while taking steps to roll back important supply chains in the US so that we can China or any Do not depend on other countries to produce important goods in a crisis. “It outlines punitive measures on any companies that misinterpret the country of the origin of their goods for cyber espionage and potential sanctions on Chinese companies, and is crucial to the” phase one “trade deal agreed by Mr. Trump Is, under which tariffs live at $ 360 billion is not enough to deserve Chinese goods.

Also on climate change, which is expected to assume prominence in a Biden foreign policy and has been seen by some Chinese analysts as an area where the two countries can cooperate, Mr Biden has said he is “under pressure on China” Will take steps aimed at “pouring” – the world’s largest emitter of carbon – to stop subsidizing coal exports and polluting other countries by polluting billions of dollars of dirty fossil-fuel energy projects through their Belt and Road Initiative Outsource “His proposals include” a carbon adjustment fee “that could potentially target not only China, but also India and other emitters.

If it is clear that Mr Biden believes that the path to address his economic challenge at home will run through Beijing, he will face a difficult balancing act to achieve his economic goals at home – Which, underlining his campaign’s policy documents, required many to continue. Mr. Trump’s tough economic policies targeted China – while at the same time, on the verge of relations between the world’s two biggest powers Finding ways to pull back.