ICYMI via Fox Business:
Majority of taxpayers who would bear brunt of hike would have incomes below $500K
Republican lawmakers on Monday released an analysis showing that even a slight corporate tax increase would have a negative effect on middle-class Americans and small businesses.
The study was released by Sen. Mike Crapo, R-Idaho, and Rep. Kevin Brady, R-Texas, and conducted by the Joint Committee on Taxation.
The JCT analyzed the economic effects of raising the corporate tax rate to 24%, 25% and 28%. The corporate tax rate was lowered to 21% from 35% by the 2017 Tax Cuts and Jobs Act.
The study found that over the course of 10 years, more than 66% of the taxpayers who would bear the burden of increasing the rate to 25% would have incomes below $500,000.
About 169 million of the 172 million – or 98% – of the taxpayers who would be hit by that slight hike have incomes below $500,000.
Increasing the corporate tax rate to 25% would raise an estimated $27.7 billion from taxpayers in 2022 alone.
“This study supports what we’ve long known–corporate tax hikes are primarily borne by workers and retirees, and certainly the middle class/those making well below $400,000 a year,” Crapo and Brady said in a statement. “Now is not the time to raise taxes on the very people we are asking to lead us out of this crisis.”
Brady and Crapo added that a separate study showed that a corporate tax increase would hit 1.4 million small businesses that were organized as C corporations.
They also said that corporate tax hikes would hurt retirees since 107.8 million taxpayers have some ownership in U.S. corporations via pensions, IRAs and other retirement accounts.
READ THE FULL REPORT HERE