Penn Wharton Budget Model Analyzes the Biden 2020 Campaign Platform: Budget and Economic Effects of $5.35 Trillion in New Spending and $3.375 Trillion in New Taxes

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PHILADELPHIA, September 14, 2020—As Election Day 2020 draws closer, the Biden campaign has unveiled a substantial list of policy proposals. The Penn Wharton Budget Model (PWBM) at the Wharton School of the University of Pennsylvania has analyzed the budgetary and economic effects of Biden’s tax and spending plans across seven categories: immigration, tax, education, infrastructure and R&D, housing, Social Security, and healthcare.

PWBM estimates that:

  • Over ten years, the Biden platform would raise $3.375 trillion in new tax revenue while increasing spending by $5.35 trillion.
  • Under the Biden tax plan, households with adjusted gross income (AGI) of $400,000 per year or less would not see their taxes increase directly but would see lower investment returns and wages as a result of corporate tax increases. Those with AGI at or below $400,000 would see an average decrease in after-tax income of 0.9 percent under the Biden tax plan, compared to a decrease of 17.7 percent for those with AGI above $400,000 (the top 1.5 percent).
  • The largest areas of new net spending are education at $1.9 trillion over ten years and infrastructure and R&D at $1.6 trillion over ten years.
  • In total, the Biden platform increases federal debt by 0.1 percent in 2030 before decreasing debt by 1.9 percent in 2040 and 6.1 percent in 2050; GDP decreases by 0.4 percent in 2030, sees no change in 2040, and increases by 0.8 percent in 2050.

For more information, see the full PWBM analysis of the Biden 2020 platform.

Media inquiries: Wharton Media Relations, (, +1 (215) 898-8036

About the Penn Wharton Budget Model

PWBM is a nonpartisan, independent applied research organization housed at the Wharton School of the University of Pennsylvania. PWBM works directly with policymakers and staff, serving as an honest broker by providing accurate, accessible, and transparent economic analysis of the fiscal and economic impact of public policy without advocacy. PWBM’s estimates are regularly referenced by policymakers and top news outlets. For more information, visit

About the Wharton School

Founded in 1881 as the world’s first collegiate business school, the Wharton School of the University of Pennsylvania is shaping the future of business by incubating ideas, driving insights, and creating leaders who change the world. With a faculty of more than 235 renowned professors, Wharton has 5,000 undergraduate, MBA, executive MBA and doctoral students. Each year 13,000 professionals from around the world advance their careers through Wharton Executive Education’s individual, company-customized, and online programs. More than 99,000 Wharton alumni form a powerful global network of leaders who transform business every day. For more information, visit