The planned corporate tax rate hike in President Joe Biden’s budget proposal would eradicate hundreds of thousands of jobs and send the economy into recession, a non-partisan tax watchdog reports.
Biden’s proposed corporate tax rate of 28 percent, first offered in 2021 as part of his “Build Back Better” spending scheme, “would reduce long-run GDP by 0.5 percent, and the tax increases in the budget, including a higher corporate tax rate of 28 percent (up from the current 21 percent) and international tax changes, would further discourage domestic investment and reduce the productive capacity of the United States,” the Tax Foundation reports.
“For example, raising the corporate tax rate to 28 percent would reduce long-run GDP by 0.7 percent and eliminate 138,000 jobs,” the Tax Foundation adds.
“At a time when U.S. policy needs to prioritize expanding the productive capacity of the economy, the Biden administration’s proposals would raise more than $4 trillion in new revenue for the government at the cost of the economy, raising the tax burden on work, saving, and investment and putting us out of step with our competitors,” the report concludes.
If approved, the United States would have the developed world’s highest corporate tax rate.
Experts warn Biden’s plan would lead to economic ruin and suffering.
“We already are approaching Jimmy Carter’s inflation with the same policies. Now he’s going to give us Jimmy Carter lack of growth with a capital gains tax, which was viewed as so horrific that a bipartisan Republican and Democrat Congress beat Carter and cut it almost in half. That’s how bad it was,” Americans for Tax Reform president Grover Norquist told Fox Business’ “Mornings with Maria.”
“It takes the corporate income tax higher than China’s,” Norquist added. “It takes the individual income tax, which is paid by many of these small businesses that pass through organizations, up almost to 40%. This is going to hit many, many small businesses, many, many independent contractors… This is an assault on small and medium businesses.”
“President Biden’s FY2024 budget proposal is a roadmap to fiscal ruin. From its delayed rollout to its reckless taxes and out-of-control spending, this budget sends a clear message: President Biden doesn’t seem to give a rip about keeping his promises or securing the fiscal health of our nation,” said U.S. Sen. Chuck Grassley, the Senate Budget Committee’s Ranking Member.
“Even with near-record revenues, President Biden wants to raise taxes on every segment of America. Under his plan, the government’s bite out of the economy would be the largest since World War II. And despite all that, he’s somehow managed to continue adding to our national debt at a breakneck speed. It’s an unserious proposal, and will be treated as such by both parties in Congress,” Grassley added
“It’s past time President Biden gets serious about the fiscal challenges facing this country. That means actually engaging in talks about the debt limit and working with Congress to restore the budget process,” Grassley concluded.