(RepublicanDaily.org) – In discussions about tax policy, those in favor of extending charges often propose corporation tax as an equalizer. Left-leaning politicians tell voters that large companies have more than they need, while average Americans require more benefits and amenities.
Joe Biden has relied on this narrative for his election bid. He’s promised to increase the corporation tax rate from 21% to 28%. He has also pledged that no American making less than $400,000 will pay more tax under his scheme.
Unfortunately, while this sounds like a great deal for the average American, it won’t work as well as Joe Biden would like you to think. On Tuesday, October 13, the AEI released a report showing how his plans would decrease GDP and increase the tax burden on workers at every income level long-term.
A Bad Idea
The truth is our country desperately needs corporations to provide employment. If we allow a tax hike like the Biden team is proposing, major companies will inevitably decide to move somewhere with a more business-friendly regime. Those that stay will have to cut wages to maintain their profit margins.
President @realDonaldTrump on corporate tax rates: Companies are pouring into the country because of the tax rate, and if Biden raises it we will end up with a depression "the likes of which you never had"#TrumpTownHall pic.twitter.com/ENp7Q7jT90
— Team Trump (Text VOTE to 88022) (@TeamTrump) October 16, 2020
Increasing tax and extending benefits are central aims of Democrat policies. Here, however, Biden and his team are trying to convince middle-class Americans they’ll feel none of the costs of increased taxes while realizing all the benefits. Not only is this dishonest, but it could also have catastrophic consequences for our corporate landscape.
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