- The Biden administration has proposed a corporate tax increase plan that it says will maintain the competitiveness of the U.S. and help grow the economy.
- President Joe Biden and other administration officials repeatedly stress that they are only partially rolling back the corporate tax rate — to 28% — after the 2017 law slashed it from 35% to 21%. They argue this rate adjustment will not hurt U.S. competitiveness and will only restore corporate revenue levels, which had fallen dramatically due to the 2017 tax cuts.
- According to the estimates from the Congressional Joint Tax Committee, the net corporate tax cut was only about $300 billion over 10 years.
- Under the Biden tax increase proposal, the nearly $1.2 trillion in corporate tax increases enacted in the 2017 law will stay on the books. His new corporate tax increases ($1.8 trillion over 10 years and about $2.5 trillion over 15 years) will be piled on top of these tax increases. That means that about $3 trillion of tax increases will be heaped on American corporations just as we are coming out of the worst economic downturn in years.
- The cumulative impact of these tax increases will hurt corporate investment and productivity just as the economy begins to recover. These tax increases will result in lower wages for workers, higher prices for consumers, and lower investment returns for investors, including pension funds and retirement accounts.