CEOs Speak Out Against Democrats’ Tax Hike To Pay For $3.5 Trillion Infrastructure Bill Under Biden’s Infrastructure Package.
President Joe Biden’s proposed tax hike to fund a $3.5 trillion infrastructure program drew the ire of a powerful Washington business lobbying organization on Tuesday.
Some of the country’s top CEOs are members of the Business Roundtable (BRT), which was founded in 1972 and meets to debate public policy concerns.
CEOs cited tax rises, the persistent labor scarcity, and a halt in the COVID-19 immunization program as the top threats to growth in a study done by the association. Among these issues, the possibility of tax hikes garnered the worst criticism.
BRT members discussed how a corporation tax increase would reduce U.S. firms’ global competitiveness in a video released to their Twitter account. Each speaker said that prior tax cuts were vital to increase investments in their operations and staff, while also warning that a hike would make American businesses less capable of competing with organizations from other nations, such as China.
The latest installment in the CEO interview series, #BRTTV Season One, Episode Three: U.S. Competitiveness, is available today. Leaders from @RaytheonTech, @UnionPacific, @GapInc, and @DowNewsroom highlight how higher taxes on American businesses would stifle competition: https://t.co/qpikmo05ZV pic.twitter.com/rX0YZedJyQ
BRT President and CEO Joshua Bolten summed up the CEOs’ concerns by calling the potential spike “one of the largest business tax increases in history.” He went on to say that the “tax on job creators” would hurt global competitiveness and stifle domestic investment.
“Raising taxes on America’s largest job creators by over $1 trillion – nearly three times the net corporate tax cut from 2017 tax reform – would be one of the largest corporate tax hikes in history,” Bolten added.
“To boost the US economy, firms must invest in personnel, innovation, and operations, not new levies that will undermine it. He went on to say, “We urge policymakers to reverse direction.”
A number of additional adjustments to the nation’s tax code would be made under the Democrats’ proposal for high-income earners and companies. If implemented, the corporation tax rate would climb to 26.5 percent, up from the current rate of 21% set by previous President Donald Trump. It would, however, be lower than the 35 percent tax rate that existed prior to 2017.
Individual rates would rise to 39.6%, with a 3% surcharge applied on individuals earning $5 million or more. With the funding bill, a 25% capital gains tax would be implemented.
Likewise, the Biden administration has done likewise. Brief News from Washington Newsday.