“Corporate tax hike to hit middle-class Americans, study shows”

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.