Business
Biden Wants A Corporate Tax Rate Hike To Fund His Plans
President Joe Biden unveiled a proposal Thursday aimed to increase the corporate tax rate. From its current 21% rates, Biden’s plan will increase it to 28%. This will fund the President’s massive $2 trillion infrastructure plan.
RELATED: Jeff Bezos Supports Corporate Tax Hike, Infra Bill
Bottom Line: Higher Corporate Tax Rates
The Biden administration unveiled plans to overhaul the corporate tax code, lining up different proposals. However, they all point to the same ending: large companies will pay higher taxes to help fund Biden’s spending plans.
The plan hopes to raise $2.5 trillion in revenue over the next 15 years. American companies will bear the brunt of the planned hike. This entails a revisit of the tax codes and weeds out incentives that allow companies to lower or remove their liabilities. However, Biden’s proposal will also include new incentives to boost the administration’s green agenda. There are features in the plan that proposes replacing fossil fuel subsidies with tax incentives for green energy initiatives.
Some Corporations Willing To Pay More
Some companies showed their willingness to embrace the tax restructuring. Lyft President and co-founder John Zimmer said he supports the 28% corporate tax rate hike. “I think it’s important to make investments again in the country and the economy,” Mr. Zimmer said. Yesterday, Amazon founder and CEO Jeff Bezos issued a statement that supports the Infrastructure plan and acknowledged that it will require concessions from all sides. In addition, Bezos stated that Amazon supports a rise in the corporate tax rate.
While there are those who agreed with the initial proposal, there are those who wish to check the details first. The overall scope of the proposal will likely face resistance from the business community. Many companies enjoy the current tax code’s incentives that allowed them to file taxes much lower than the current 21%.
Goldman Sachs Thinks Tax Plan WIll Lower Earnings
Increasing the tax rate can lead to lower corporate earnings, according to Goldman Sachs. If implemented, the new tax rate can remove around 9% of next year's S&P 500 per-share earnings. Instead of 28%, Goldman Sachs proposes that a 25% hike will reduce the drag to earnings by 3%. However, the Wall Street banker expects Biden’s plan to face a political landmine during deliberations. The firm warned that once the tax plans get a lot of airtime, the market will see a new cause for concern. “Equity investors will soon pivot focus from rising interest rates to raising tax rates,” Goldman Sachs strategists wrote.
Meanwhile, various business groups warned against adjusting the corporate tax rate again. In 2017, President Donald Trump lowered corporate tax rates from 35% to 21%. This early, the Business Roundtable said they will actively oppose attempts to raise taxes on corporations.
Neil Bradley, the US Chamber of Commerce's executive vice president, told CNN Business that the timing isn’t right. “Coming out of the pandemic, raising taxes, especially to the degree the Biden administration is proposing, would hobble any economic recovery,” he said. Bradley did welcome Biden’s Infrastructure program but said that pairing it with a tax plan will backfire. “If you add [tax hikes] to an infrastructure bill,” he said, “all you've done is defeat the infrastructure bill,” Bradley concluded.
Room to Negotiate
In addition, the administration made it clear that the President’s proposal contains room to negotiate. as something of an opening bid and that there will be room to negotiate. Commerce Secretary Gina Raimondo asked lawmakers to remain open for discussion. At the same time, Raimondo said that the basic framework will remain as is. “We want to compromise. What we cannot do, and what I’m imploring the business community not to do, is to say, ‘We don’t like 28. We’re walking away. We’re not discussing.’ That’s unacceptable.” she said.
Watch the CNBC video reporting that after proposing a corporate tax hike from 21% to 28%, President Joe Biden offers a compromise:
Loading ...Do you agree with asking companies to pay higher taxes to fund the President’s spending programs? Would you rather everybody pitch in instead? Or, would you prefer no tax increases for everybody? Let us know what you think. Share your comments below.
25 Comments
All the Democrats are trying to do is to destroy America they want to make it to where it’s total chaos so they can use that bill or that ball that Obama put in to where he can take all of our retirement money and stuff like that taxing corporations or businesses it’s just going to make them raise their prices and the low man on the totem pole pays again. All the Democrats in office are nothing but communist trying to make it to where it becomes a one world order that’s why they are doing all the chaotic things they are doing
Biden used loopholes not to pay taxes
Seen this coming! No there should not be any tax hike for his benefit.
I agree with John, Patrick & Tricia. We need Trump back in office. We need to protect AMERICANS!!!
No tax increase for anyone, whether corporations or people. In the long run, it is the citizenry that will end up paying the increase. Democrats are destroying this country.
No Tax increases we want Trump Back
Where do you think the money comes from????????? From you & me, check with your nearest merchant. Why did Trump do so well. whether you like him or not, bring hm back. And his kids!!!!!!!!!!!!!!! Not much to criticize them for!!
I agree with the comments. What the Liberals are doing is insane and immoral, leading us right into Socialism, not good.
It’s past the time for wealthy corporate to do right by all. Bigoted Republicans want a person in office to allocate misuse, and abuse. Our proir-president was classic for death, destruction and keeping dishonesty as a means to shackle suffering to down trodden individuals (minorities) while corporate evades responsibilities. Perhaps a classic example of how deep a lost of integrity is patterned by their choice to represent sitting in the highest seat in the land and evading taxes. No more lies from and hypocrisy: CORPORATE PAY YOUR FAIR-SHARE.
All the presidents trying to do is create socialism no to corporate taxes being higher. He has destroyed the border he wants to destroy everything else. We are a free country no socialism
I am concerned about the one party march on making rapid changes without the collaboration of both parties in debate and discussion. Half the nation is not feeling that they are being heard. We need unity as we chart our future.
You’re so woke, Ronald. What does bigoted have to do with this? This is subject is strictly economic, it has nothing to do with race, religion, or class. Unlike you stinking liberals, I consider Joe Biden my President, I won’t deny it hoping it will all magically disappear. However, I vehemently disagree with his policies.
You stupid lefties seem to think that if you wish hard enough your problems will disappear. It took stealing an election through manipulation of our voting systems to get this socialist into office.
Really if you are making good money you don’t pay you’re share.you get write offs and let middle America pay it all.of course you don’t want to pay more so those of us on ss have to pay so your greed can make you richer
I vote no this is not the right time to bring this upon corporations that have already lost millions of dollars due to the pandemic….Besides….Biden is a moron
He who can not be mentioned ( rember Harry Potter and the dark wizard? ) lowered corporate taxes which already brought several manufacturers with the attendant jobs and domestic trade ( commerce ) back to the United States so the socialist fair haired boy has to raise those taxes back up so those companies will go back overseas taking with them their jobs and domestic commerce putting the USA back on the down slope to socialism as quickly as possible.
As a politician Trump was a 3 or 4, but as a man with a mission he grabbed the USA by its boot straps and tried to pull her back up, hell, DID start to pull her back to her pre-obama levels of respect and military supremacy. 100+ days and how much is already gone backwards?
The country was just starting economically, from the COVID19 pandemic so the fair haired boy wants to take us back to the good old days when he was Vice President.
I am afraid that this last election was the end of the United States OF AMERICA as a democracy as people of my generation knew it. Born in 1940.
How much are you paying on SS? Nothing, unless of course you live in a blue state that taxes SS. How much is someone’s share? You think one person should pay a higher % than another? WHY? You had the same opportunity as anyone else the fact that you are poor is YOUR fault. I’ll bet you never worked two jobs or volunteered for ant overtime.
They can raise taxes on corporations to 100% and it won’t make a difference. This bill is designed to kneecap any business that doesn’t have an army of loophole finding lawyers and accountants. The GE, Amazon, etc. of the world will be just fine and will benefit from the “tax hike”. They will still have the capacity to dodge or off-shore. This bill is designed to eliminate competition and destroy jobs. Less people working equals more dependency on government, equals more power and control.
Joe Biden stole the election and should not be in office at all. We were doing fine with President Trump agenda and it should have been Left alone.
Why is the government always spending money that it doesn’t have? If a citizen went into debt like that we would be incarcerated!
As stated by others, I am well aware that if corporation taxes are to increase significantly that we the little people will be left holding the bag. Corporates will have an excuse to increase their prices which in turn increases what comes out of every persons wallet. Thus making inflation even higher. It would be nice if there were not so many loopholes for corporations and other rich people to hide money and pay less taxes than I do. Make so they have no write offs and make them actually pay taxes. That would be a first because if the government made them pay taxes all these crooked politicians wouldn’t be able to afford $3 million dollar houses. cheaper to pad the politicians pockets than pay taxes.
I voted for Biden even though I’ve NEVER agreed with most Democrat platforms, primarily because I cannot stand the Liar-in-Chief on the other side. The Infrastructure Program and the American Rescue Plan are both way too big and expensive, which will negatively affect EVERYONE who pays taxes, including big corporations, though not to the extent they will hurt individuals. I’m almost tempted to look for a way to get involved and make a difference, but at 76 and never politically active except for voting I doubt I could be be very effective. At least I volunteer to help at the polls, though that has no influence on either party’s policies.
His infrastructure plan is a joke we the people are going to pay for it higher prices for the consumer bad enough with the lockdowns and everything else rightnow this man has not kept one campaign promise all he does is sign executive orders he is nothing but a liar and a dictator he is the worst president i have ever seen we need to look at his taxes 47 years in government and still hasn’t done anything not 1 job created so far and opened the borders and wants to blame trump for he is senile.
Ronald, you apparently lack the ability to understand basic accounting. It is not the low tax rates that allow corporations to pay little if any taxes, it is the loopholes that our politicians allow them to use. Here we have a President, whom along with his family, has become wealthy doing nothing but using his position to game the system. Why don’t you ask Hunter to donate his ill gotten booty to the cause.
Buck Fiden and his one World Order agenda!
Reduce EXPENSES by the amount of Bidens corporate tax increase or turn to the countries we support and reduce US support financially.