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Dynamic Distributional Analysis of the Biden Platform

PWBM uses dynamic distributional analysis to evaluate the effects of the Biden platform on different age and income groups. We find that working-age individuals in the bottom 40 percent of taxable income benefit the most due to expanded health insurance, increases in housing subsidies, and lower cost of prescriptions in the Biden platform, while young, high-income individuals and wealthy retirees see net losses due to tax increases and lower returns on their savings.

Dynamic Distributional Analysis of the Biden Platform

Presidential Candidate Joe Biden’s Proposed Child Tax Credit Expansion

Presidential candidate Joe Biden recently announced a proposal to temporarily expand the Child Tax Credit (CTC). We find that this proposal would cost $110 billion if implemented solely for calendar year 2021 and would cost $1.4 trillion over ten years if extended permanently. While higher income households are more likely to have qualifying children and would see larger average tax cuts ($1160 for the 90-95th percentile), lower income groups would see the largest relative benefit, with after-tax incomes increasing by 9 percent for the bottom quintile.

Presidential Candidate Joe Biden’s Proposed Child Tax Credit Expansion
PDF Brief Brief

Biden 2020 Analysis

This legacy brief is available as a downloadable PDF.

The Increasing Mortality Gap by Education: Differences by Race and Gender

Additional education is associated with similar reductions in mortality rates for men and women—in 2016, for example, men and women with high school degrees had mortality rates 16 percent and 14 percent lower, respectively, than those without degrees. That same year, however, the mortality advantage of completing a high school degree was 18 percentage points higher for White people than for Black people.

The Increasing Mortality Gap by Education: Differences by Race and Gender

Business Taxation in the Biden Tax Plan

We use PWBM’s new dynamic model enhancement of the business sector to analyze several foreign and domestic business taxation provisions from the Biden tax plan. While raising the effective tax rate on foreign profits increases domestic capital, wages, and GDP, provisions that raise domestic business taxes have the opposite effect—when combined, these business tax provisions decrease the capital stock by 0.21 percent and decrease wages by 0.69 percent in 2050.

Business Taxation in the Biden Tax Plan