President Biden Would Make the US a Tax Rate Outlier

President Joe Biden proposes raising the corporate income tax rate, capital gains tax rate, and personal income tax rates, among other tax increases. These hikes would make the United States an international outlier, with some of the highest tax rates in the developed world. In his fiscal year 2025 budget request to Congress, President Biden proposed about a dozen new or higher taxes that would raise close to $5 trillion in additional revenue over a decade (according to their optimistic forecasting). I detailed the specifics in an earlier piece, "What Does Biden Plan for the Tax Code?" The Biden tax hikes would primarily fall on capital income, leading to less domestic investment, fewer jobs, and slower economic growth. According to estimates from the Tax Foundation, the budget proposal would reduce long- run GDP by 2.2 percent, hurt wages, and eliminate 788,000 jobs. This is likely a significant understatement of the negative economic effects. The analysis notes that the budget's proposals will make America an international outlier on individual and corporate taxes.