By Evie Fordham FOXBusiness
President Trump said putting former Vice President Joe Biden in the White House would bring about the “biggest tax increase in history” on Thursday.
EXTRA CORONAVIRUS UNEMPLOYMENT BENEFITS TO START IN 2 WEEKS: KUDLOW
“They want to tax $4 trillion, it’s going to be the biggest tax increase in history by far,” Trump told “Mornings with Maria.” “They’re big taxers. It’s just something that won’t work. We’ll have – you will see a depression the likes of which you have never seen. You’ll have to go back to 1929, I guess it doesn’t get too much worse than that.”
Trump touted the stock market’s performance during his term.
President Trump listens during an event called “Kids First: Getting America’s Children Safely Back to School” in the State Dining room of the White House, Aug. 12, 2020, in Washington. (AP Photo/Andrew Harnik)
“We’re in the middle of a pandemic, and yet we’re going to be hitting records as the Nasdaq already has many times,” he continued.
“In the old days when you were a politician, you talked about tax cuts,” Trump said. “You didn’t talk about tax increases. I’ve never heard of a politician that got elected, ‘We are going to increase your taxes.'”
The policies Biden intends to enact, including raising taxes on individuals making more than $400,000 a year, would collect raise tax revenue by $3.8 trillion over the next 10 years, according to analysis by the Tax Foundation. The Tax Foundation says Biden’s plan would end up collecting roughly $3.2 trillion in actuality “when accounting for macroeconomic feedback effects.”
Biden released his tax plan in January. University of Pennsylvania’s Wharton School researchers estimate it would only raise between $2.3 trillion and $2.6 trillion. That’s at least $600 billion less than what Biden is aiming for.
It would also have a negligible effect on GDP and the overall economy. In fact, the study estimates it would decrease economic growth by 0.1 percent by 2030, increasing it by the same amount through 2050.
Biden’s plan includes raising the corporate tax rate. Trump and Republicans slashed the corporate tax rate in 2017 from 35% to 21%.
FOX Business’ Brittany De Lea contributed to this report.
