Biden's corporate tax hike could cost US economy 1M jobs, trade group warns

National Association of Manufacturers says 1M jobs to disappear within 2 years if president's proposed tax increases are approved

Per Fox Business:

President Biden has pitched his nearly $2.3 trillion spending proposal as a vital investment in the U.S. economy, but the proposed tax hikes that would fund the sweeping measure could kill close to 1 million jobs

That's according to a study released Thursday by the National Association of Manufacturers, which found that 1 million jobs will disappear within two years if the president's proposed tax increases are approved.

"This study tells us quantitatively what manufacturers from coast to coast will tell you qualitatively: increasing the tax burden on companies in America means fewer American jobs," said NAM President and CEO Jay Timmons.

The Treasury Department on Wednesday released details of Biden's tax plan, which aims to raise $2.5 trillion over 15 years to finance his sweeping spending initiative, dubbed the American Jobs Plan. That includes raising the corporate tax rate to 28% from 21%, imposing a new minimum tax on global profits and cracking down on companies that try to move profits offshore.

But boosting taxes on corporations could shrink the nation's GDP by $117 billion in 2023 and $190 billion in 2026, according to the study, conducted by Rice University economists John Diamond and George Zodrow. Those figures assumed a repeal of the 20% deduction for pass-through businesses, increasing the top income tax rate and raising the corporate tax rate to 28%. 

"The conclusion of this study is inescapable—follow through with tax hikes that give other countries a clear advantage and we’ll see far fewer jobs created in America," Timmons said.

The tax increases would fund massive investments in the nation's roads and bridges, as well as transit systems, schools and hospitals. 

But the White House is already facing headwinds over the proposal: Both the U.S. Chamber of Commerce and Business Roundtable, which is comprised of CEOs from some of the nation's biggest companies, warned that forcing corporations to pay more in federal taxes would ultimately derail the economy's recovery from the coronavirus pandemic.

Biden indicated on Wednesday that he's willing to lower the proposed corporate tax increase amid pushback from Republicans and some moderate Democrats, who have raised concerns that the tax increases could derail the economy's recovery from the pandemic and hurt U.S. competitiveness abroad.

"I'm willing to listen to that," Biden said when asked at the White House whether he would consider a corporate tax rate lower than 28%. "I'm wide open. But we've got to pay for this. There are many other ways we could it. But I'm willing to negotiate that."

The corporate tax increase would generate about $740 billion in new revenue over the next decade, according to a recent analysis published by the Tax Policy Center.

1 year, 7 months ago

Governors in Iowa, North Dakota and Alabama join GOP colleagues in banning TikTok for state employees

The Republican governors of three more states have joined the growing number of GOP governors who are banning TikTok among state government employees amid security concerns about the Chinese-owned social media platform

1 year, 7 months ago

Arizona Governor Creates Shipping Container Border Wall

Arizona Governor Doug Ducey has had hundreds of double-stacked shipping containers topped with razor wire placed on the state’s border with Mexico

1 year, 7 months ago

Stacey Abrams’s Georgia Nonprofit Could Face Criminal Investigations for Unlicensed Fundraising

New Georgia Project's charity license has lapsed in at least nine states

1 year, 7 months ago

Biden says ‘more important things’ than border visit, despite 59 trips to Delaware, 8 stops for ice cream

Biden has yet to visit southern border despite historic crisis under his watch

1 year, 7 months ago

Governor Kristi Noem delivers annual Budget Address, says the state can afford grocery tax cut

In about thirty minutes of remarks, Governor Kristi Noem laid out her administration would like to see nearly $2.2 billion spent over the course of the next fiscal year and a half.

1 year, 7 months ago

‘A Clear And Present Danger To Its Users:’ South Carolina Gov. Bans State Employees From Using TikTok Amid National Security Concerns

South Carolina became the second state in the union Monday to permanently ban state employees’ electronic devices from using TikTok amid federal officials sounding the alarm that the Chinese-based social media app threatens national security