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Commentary: Experts: Biden Will Destroy 159,000 Jobs with His Tax Hike

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President Joe Biden has pushed Congress for a higher corporate tax rate to reform the Tax Cuts and Jobs Act of 2017, but some experts are worried about the impact that could have.

Ang Tax Foundation examined the effects of what would happen if the rate rose from 21 percent to 28 percent and a 15 percent minimum tax “on book income” for large companies was introduced.

This would be a significant increase from deductions made as a result of the act, which reduced the company’s tax rate from 35 percent. In fact, the hike would give the U.S. one of the highest corporate tax rates in the world.

While many people dismiss corporate tax increases that don’t affect the average person, they may be very wrong.

The Tax Foundation estimates that 159,000 jobs will be lost as a result of the increase in the long run, with wages and economic output somewhat hit.

In addition to tax increases on corporations, the administration want to raise rates on individuals who earn more than $ 400,000 a year.

“If you earn under $ 400,000, you won’t pay a penny more in taxes when I’m president,” Biden tweeted in September.

“The super rich and big corporations will finally pay their fair share – and we’ll pour that money into working families. We’ll reward work – not wealth.”

Tax increases that will result in unemployment could hurt the path to economic recovery after pandemic coronavirus.

The latest unemployment rate, 6.2 percent, indicates that many Americans will return to work, but that number is still relatively high compared to numbers before the pandemic.

Treasury Secretary Janet Yellen suggested earlier this year that Biden wanted to make the changes as part of the next economic spending package.

“[Biden] said that eventually, as part of a larger package that will include significant spending and investment measures – not now as the pandemic actually weakens the economy – that he would like to release portions of the 2017 tax cuts that benefited highest income Americans. and large companies, ”Yellen said in January, according to CNBC.

Before Biden and Democratic lawmakers can take any action, they will have to wait somehow for the economy to fully reopen in all 50 states.

Although tax increases for the rich and powerful sound sound to some on paper, they can actually do serious damage to the average American worker.

This article originally appeared on The Western Journal.



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