Biden's Plan vs. Trump's Plan | Tax & Economics
We are just 6 and a half weeks away from what most people would describe as the most important election in United States history. Whether you've already decided who you're voting for or not, it doesn't hurt to take a second look to make sure you're making the right decision. Our goal here at American News Insider is to provide the people with the facts and allow them to make their own conclusions. At no point will we tell you how to feel or who to vote for. If we give an opinion we will tell you it's an opinion and based on one person's interpretation of facts. So let's begin comparing both candidate's plans for America.
I will break down Joe Biden's plan into simple terms but you can find the entire plan by clicking here.
What is Biden's plan for taxes?
Between the fiscal years of 2021 and 2030 Biden platform will raise $3.375 trillion in tax revenue and increase spending by $5.37 trillion. Let's break this down into how he plans to spend this tax revenue.
Education will receive $1.9 trillion over a ten year period.
Infrastructure will receive $1.6 trillion over a ten year period.
Free college for low income families.
Extend low income tax credits.
Increased benefits in Social Security for low income households.
100% acceptance for all who need section 8 housing.
How does Biden plan to collect this $3.375 trillion in revenue?
Corporate tax: $1,438.5 Billion
Payroll tax: $992.8 Billion
Income tax: $944 Billion
Biden's tax plan will raise taxes on corporations, capital income, and income of high-income filers. High-income filers are defined as anyone that makes more than $400,000.00/year.
Because Biden's spending outweighs his revenue this will create an increase in federal debt by $1.975 trillion.
Biden promises free 4-year degrees for all households that make less than $125,000 a year.
Biden promises to raise wages to a minimum of $15 an hour.
Tip: When you increase taxes on corporations, they cannot continue to pay higher wages or create new jobs. You will also see lower investment returns.
Now I will compare Trump's plan against Biden's:
The immediate difference I found between the plans were that Trump did not provide specific numbers for his plan to the public. Although, neither did Biden as we had to dig to find his specifics and they were provided by budgetmodel.wharton.upenn.edu
Let's compare taxes first: As Biden promises not to touch the taxes of those making less than $400,000.00 and raise taxes on corporations, Trump's plan is the opposite. Trump has already cut taxes for corporations allowing them to expand, create jobs, and provide higher wages. Trump has also promised to get rid of payroll taxes permanently if re-elected for those making less than $104,000 a year.
Trump has no plans to increase taxes on the people or corporations. Most of his plan focuses on the root of the problems that Biden's plan is putting a band-aid on. When we continue to throw money at low income household's we're only pushing off a problem and not fixing the problem. Trump's plan to end reliance on China will in turn create millions of jobs within a year. This will create a solution to the "low income" issue that the Biden administration apparently believes exists. Of course not all households issue of low income is due to jobs. However, this will eliminate the need for billions of dollars in tax revenue having to go to low income households that truly just need a better job or a higher wage to fix their problems.
Trump is not promising any free college for families. He has no plan to change the current college tuition benefits that the government already provides. Let's take a logical look at Biden's plan for free college.
According to USNEWS.com the average state college tuition costs $11,260 a year. That equals to about $45,040 for a 4 year degree per person. According to NCES.ED.GOV there are 12.3 million students under the age of 25 and 75 million students over the age of 25. About 85% of these students will need financial aid. So let's do the math...
12.3 million plus 75 million equals 87.3 million. Multiply this number by 0.85 and you get 73.9 million people that will need assistance for college. Under Joe Biden's plan he will award all of these people a free state college tuition. 73.9 million multiplied by $45,040 equals $3.3 Trillion dollars. Biden only allowed $1.9 trillion to go towards education and that was over a 10 year period. This cost for free college tuition is calculated at a 4 year period without allowing any room for tuition increases or student body increases. How can Biden promise free tuition on a plan that he hasn't calculated for it? How does he plan to do this without raising taxes to at least 30% on the middle class? Remember, only 1% of the population makes over $400,000.00 a year to tax. He will not get what he needs to pay for his current plan - there is no way he will collect enough tax revenue needed to pay for college too.
Because Trump hasn't given specific numbers to his tax plan, it's hard to compare numbers. So we need to compare a few other things here. First, which plan will benefit the people the most? Second, which plan makes financial sense? Lastly, which candidate is more likely to keep their promises on their plan?
I will let you decide for yourself. You can find Trump's entire plan here.
Biden's plan isn't necessarily a bad plan but it looks very similar to every other presidential politician over the last few decades. Increased benefits for low income. What this does is encourages people to take lower paying jobs to reap benefits from the government and it does not fix any problems within the market. Trump's plan isn't necessarily bad either has he has had the opportunity to prove himself over the last 3 years which could be the reason for not releasing any number specifics. Remember, the media will tell you that unemployment in 2020 was somehow Trump's fault and not that of COVID-19 or that of governors keeping their states closed. The media is biased and will not provide you with facts. Use your critical thinking skills here to make a logical decision.