The tax plan announced by the Biden White House would charge U.S. corporations a higher tax rate than the rate corporations are charged in Communist China.
On Thursday, Biden’s tax plan was posted on the White House website, in the form of a “Fact Sheet,” which details the president’s goal of raising the corporate tax rate to 28%:
“Raising the corporate tax rate to 28% and the corporate minimum tax to 21%. President Biden believes large corporations should pay their fair share, and is committed to reversing the massive tax giveaway to big corporations that Republicans enacted in 2017. President Biden would raise the corporate tax rate to 28%. He would also ensure that billion-dollar corporations pay at least 21% of their income in taxes, building on the Inflation Reduction Act’s (IRA) corporate minimum tax.”
In response, Americans for Tax Reform (ATR) published an analysis explaining that, under Biden’s tax scheme, corporations would pay a higher rate (28%) than they’re charged in Communist China (21%).
What’s more, “Industry sectors of strategic use to the Chinese government pay an even lower rate of 15% or 10%” – and, once state corporate taxes are added in, the U.S. corporate tax rate would be around 32%, according to the analysis.
America’s workers would be hard hit by the tax hike, since they’d end up absorbing about a quarter of the additional burden, in the form of lower wage growth, ATR notes.
“Biden’s corporate tax hike on employers will hurt wages, hike prices and hurt American competitiveness,” ATR Pres. Grover Norquist warns.
Read full analysis by Americans for Tax Reform.