America’s federal corporate tax rate is currently about 21%.
The Biden administration proposes raising it to 28%.
For some perspective, that’s a 33% increase in one fell swoop. If enacted, Biden’s corporate tax rate would exceed China’s corporate tax rate, which is around 25%.
China is communist.
The Biden administration’s argument for making America less tax-friendly than communist China is not an economic argument, that it would be good for jobs in a recovering economy. That’s an afterthought at the most. Team Biden is making a sort of moral argument.
CBS’s “Face the Nation” anchor Margaret Brennan pressed Rouse about Biden’s proposal to increase the corporate tax rate from 21% to 28% or potentially higher after Rouse said Biden’s $2 trillion spending plan is “good for the economy.”
“This is 15 years of higher taxes to pay for eight years of spending. Can you really say that’s not a cost?” Brennan asked.
“I would say that the reason why the president is proposing these corporate tax increases is because that’s just the right thing to do,” Rouse said. “He believes we should be… encouraging these corporations to pay their fair share.”
Just what is their “fair share”? Why stop at 28%, when 30% is just a couple of points away? Why not 35%? If it’s morally right, doing more of it should be even more morally right.
The Biden plan, should it be enacted, won’t cost corporations. It will cost you. When corporate taxes increase, corporations don’t just eat the cost if they can help it. They will pass the costs on to their consumers, which is ultimately you. Their accountants and rent-seeking lobbyists will see to that.
Corporations, by and large, won’t pay for this, which is why you won’t hear them fight it very hard. Woke corporate America will stay woke. The U.S. Chamber of Commerce which helped put Biden in office is slamming his proposed tax hikes, but where’s the American Airlines CEO? Or Delta’s? It’s a fair question after they’ve come out as leftist politicians. Why don’t they volunteer to pay even more than the statutory tax rate? Per their ally in Washington, whose word they believe without question, it’s the right thing to do.
Biden’s policy is a prescription for inflation. America hasn’t really suffered serious inflation since the bad old days of Jimmy Carter. Between this tax proposal, should it become law, and the administration’s addiction to previously unimaginable peacetime spending, inflation or its more destructive sibling — stagflation — may not be avoidable now.
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