President Joe Biden’s plan to increase corporate tax rates as part of the updated Tax Cuts and Jobs Act could destroy 159,000 jobs. The Tax Foundation reported the news as the proposed tax hike moves through Congress.
The Tax Foundation published the impact of the proposed increase from 21 to 28 percent and a 15 percent minimum tax “on the book income” for large corporations. The change would give the nation one of the highest corporate tax rates in the world.
“An increase in the federal corporate tax rate to 28 percent would raise the U.S. federal-state combined tax rate to 32.34 percent, highest in the OECD and among Group of Seven (G7) countries, harming U.S. economic competitiveness and increasing the cost of investment in America,” according to the Tax Foundation’s statement.
Many Americans have not spoken out on these corporate tax changes, unconcerned about the changes on larger companies. However, the tickle down losses with the plan are significant. In addition to jobs losses, salary increases could be delayed or decreased.
In addition, the plan seeks to raise taxes on Americans making more than $400,000 per year. The move appears to follow through on Biden’s campaign statement that, “If you make under $400,000, you will not pay a penny more in taxes when I’m president.”
A further concern in the report included a push back on American-made business. “The tax would potentially undermine current-law investment incentives as well as those proposed by President Biden, such as the ‘Made in America’ tax credit.” In contrast with former President Trump’s America First policies, Biden’s plan would further decrease American-made incentives.
Who benefits the most under these changes? The American government and foreign governments making products for Americans — primarily China. The bottom line means more taxes for Biden’s liberal spendfest and additional opportunities for his Chinese business friends to increase revenues in the nation.
U.S. unemployment currently stands at 6.2 percent. This number has decreased, but remains well above pre-pandemic numbers under the Trump economy.
In addition, gas prices have risen 30 percent per gallon since Biden has been in office. A gallon of gas rose above $3 in nine states over the past week.
As more Americans fight for employment and pay more for fuel and other products, the need is not for policies that end more jobs. America’s deserves leadership that truly supports Americans above China, and prioritizes hard-working citizens over political paybacks.
Imagine if Biden’s entire $1.9 trillion COVID-19 stimulus bill was 100 percent focused on the American people. Instead, the bill was more than 90 percent pet projects, leaving most Americans with enough money for a latte or maybe a weekend getaway.
America cannot tax itself into a pandemic recovery. The nation needs legislation that will help its citizens increase quality jobs, not taxes. The clock is ticking toward the 2022 midterms. If conservatives respond strongly enough, Republicans can win back the House and maybe the Senate, allowing more say into the nation’s future.