It looks like Democratic front-runner Joe Biden is taking more swings at the rich, like some of his more progressive competition, with new proposals that target the wealthy and tax-dodging corporations to help fund his $3.2 trillion in policy proposals.
One piece of Biden’s plans revealed Wednesday is a so-called “minimum book tax” that would target large corporations that have somehow managed to avoid paying any federal taxes in the past. Amazon is one example as they pulled in over $11 billion in profits for 2018, but paid $0 in federal taxes.
Biden’s book tax would place a 15% minimum levy on book income for companies that report more than $100 million income. Biden’s team had originally said it would be a 10% tax, but revised it up Wednesday, according to Bloomberg.
The former vice president’s team estimates this would bring in about $400 billion over a decade based on around 300 companies that would be responsible for paying the duty. And this was only one piece of the proposals.
Biden is also targeting tax loopholes that lead to hundreds of billions of dollars in tax savings. He wants to double the Gilti, which is the global intangible tax rate, while also capping tax breaks for the wealthy. On top of all that, Biden is targeting countries that “facilitate illegal corporate tax avoidance” with $200 billion in new sanctions.
And these tax proposals would go alongside already promised increases in top individual and corporate tax rates.
These new taxes would be used to fund Biden’s bevy of proposals, including a $1.7 trillion climate and infrastructure plan, $750 billion for health care and another $750 billion for higher education reform. That totals up to a whopping $3.2 trillion over 10 years, which is actually not that much compared to some of his more progressive rivals.
Elizabeth Warren’s climate plan alone is estimated to cost $3 trillion. Her insane health care plan comes in at a whopping $20 trillion estimated cost (and that’s on the low end after one study found it could actually land more in the $30 trillion range).
Biden’s policy director Stef Feldman, in a potential jab at Warren and other progressives with wacky plans that fall short in the payment department, said the former vice president is trying to provide a better funding picture.
“The vice president does think it’s very important to be clear with the American people regarding how you’re going to pay for things in order to demonstrate they can actually get it done,” Feldman said.