Joe Biden isn’t running for president. But in a speech Wednesday in which he announced his decision to forgo the 2016 campaign trail, he offered policy positions that included capping income tax deductions at 28 percent.
The vice president proposed the measure as a way to pay for programs to boost the middle class, such as providing 16 years of free public education for all children and increasing the child-care tax credit.
"We can pay for all of this with one simple step: by limiting the deductions in the tax code to 28 percent of income," Mr. Biden said from the White House Rose Garden, flanked by his wife, Jill Biden, and President Barack Obama. "Wealthy folks will end up paying a little bit more, but it’s my guess, and I mean this sincerely, it’s my guess they’ll be happy to build a stronger economy and a better-educated America."
The budget President Obama proposed earlier this year called for limiting the value of itemized deductions, including for charitable gifts, to 28 percent for individuals who earn more than $200,000 and for couples who earn more than $250,000. Nonprofits criticized that proposal, saying that it would discourage people from donating to charities.