Biden to Tax American Businesses at Higher Rate than Communist China
Corporate tax rate increase from 21 percent to 28 percent
Democrat Joe Biden is planning to tax already struggling American businesses a higher corporate tax rate, which is even higher than Communist China charges American businesses.
Biden's 2.25 trillion dollar package would increase the corporate tax rate from 21 percent to 28 percent.
If the increase is passed into law, it would be bigger than China’s corporate tax rate of 25 percent.
Trump lowered the tax from 35 percent to the current 21 percent.
According to the Washington Post:
“The proposal would also increase the global minimum tax paid from about 13 percent to 21 percent, as well as other measures aimed at taxing corporations that shelter profits offshore to avoid taxes.”
But Biden's proposal is set to meet criticism on both sides of the aisle.
Rep. Alexandria Ocasio-Cortez (D-NY) said Biden’s effort is lacking urgency:
"This is not nearly enough,” she said.
Rep. Kevin Brady (R-TX) blasted Biden's plans due to the fact that the United States is still in an economic crisis.
“No president has ever raised business taxes to recover from an economic crisis. This couldn’t come at a worse time,” he said.
Ann Wagner (R-MO) agreed:
“Why, as this country begins to reopen and recover economically, would the Biden administration be proposing tax policy which would, in the end, hurt the American family and millions of struggling small businesses?”
Senate Minority Leader Mitch McConnell said Republicans would not support tax increases.
“I don’t think there’s going to be any enthusiasm on our side for a tax increase,” he said.
The bill also “includes $300 billion for housing, $400 billion for elderly and disabled care, and $300 billion to revive manufacturing in the United States.”
Additional expenditures include high-speed broadband internet upgrades, electric grid modifications, and water systems maintenance.
The proposal will also involve “nearly $400 billion in ‘clean-energy credits’ to promote ‘green’ energy such as wind and solar.”
Earlier this month, experts warned that Biden's tax hike would cost tens of thousands of American jobs.
The Tax Foundation conducted an analysis to determine what would happen if the rate increased from 21 percent to 28 percent and a 15 percent minimum tax “on the book income” for big companies was introduced.
The Tax Foundation estimates that 159,000 jobs would be lost as a result of the hike in the long term, along with wages and economic output taking a slight hit.