President biden and donald trump have very different tax plans they d like to implement if elected for another term very different there s a trillion difference at least between the two sides if each were to get its own ideal policies in place with broad tax cuts from set to expire at the end of next year biden and trump are headed in opposite directions a fair tax code is how we invest things to make this country great. And we will cut your taxes even further that s what built our economy crowd cheers here s what s in that trillion chasm and the difficulties with turning those plans into law.

This is the bill right here and we re very proud of it in december trump signed into law the most far reaching overhaul of the us tax system in decades the legislation included lower individual tax rates ending before january st with a maximum rate of down from the previous standard deduction increased child tax credit doubled and the corporate tax rate was permanently slashed to its lowest point since the goal was to try to spur investment to give businesses more deductions lower rates lower taxes on their profits so they d be more incentivized to make profits to give people more money in their pockets so they would spend more money but the sweeping cuts also drew criticism the president is part of the top and the bill is aimed to help the top.

If congress does nothing those individual tax cuts will expire at the end of and the government estimates that the national revenue would follow this line neither biden nor trump wants that to happen trump s plan would bring in less money than the revenue baseline biden s plan would collect more the two agree on extending tax cuts for households that make under a year but there is a major difference in how they would tax big corporations and people at the highest income levels.

I will make the trump tax cuts permanent you know they expire in a year and we will cut your taxes even more than that trump s approach to taxes is to try to lower them trump and republicans really believe that low tax rates are incredibly important for the economy extending those tax cuts would cost the government up to trillion over the next decade for example keeping the reduced rates and wider tax brackets for ordinary income would cost some trillion and the expanded standard deduction would reduce federal revenue by over billion there s been some back and forth among republicans about exactly how comfortable they are with further increases in the deficit because of tax cuts in the law not everyone got a tax cut there were things that raised money to help offset the changes they made but in general they weren t trying to keep things deficit neutral they were willing to increase deficits in order to cut taxes and that s a choice they l have to make again.

On the other side of the divide biden wants not only to pay for the rate cuts he d like to keep but also bring in additional revenue getting that done would not be easy he wants to extend the tax cuts for people making under so it s a couple trillion dollars not the full trillion. But you know a good chunk of that to keep those tax cuts going for most people beyond that biden says he l increase taxes in other areas to bring in more money for the government if you wanna make you can make a million or millions of bucks that s great. Just pay your fair share in taxes fairness is in the eye of the beholder when it comes to taxes his idea is basically that high income people and corporations should pay more and that money should go largely for new programs and for reducing deficit biden hasn t laid out exactly where all of this money would come from but he has outlined what would be some key revenue sources including raising the corporate tax from to the treasury estimates that alone would garner some trillion for the government over years he has also proposed taxes on individuals at the top like an increased medicare tax revamping capital income taxes and imposing a minimum tax on the super rich that set of changes would raise more than trillion overall biden wants to cover the trillion for continued tax cuts and raise taxes by more than trillion on top of that. But there s a catch a lot of the tax increases that biden is running on are ones that he ran on in or has proposed during his first term democrats controlled the house the senate and the white house for and very few of the tax increases they wanted got through.

As we think about the trillion or more gap between the two candidates so much really depends on the results of the election democrats and republicans both want to extend tax cuts for the majority of americans but even getting that done will be messy there s likely to be one big tax bill in and so even if there s a point of agreement on what happens for the bulk of people the revenue consequences the distributional consequences the political consequences are all tied to what happens to corporations and high income people making under should feel somewhat confident that their tax cuts will get extended because both parties want to do it but it will be just inextricably linked to what happens broadly with all the pieces of the tax cuts that are contentious piano music.