Corporate Tax Rate Increase Would Harm Millions Of Working Families

Increasing the corporate tax rate would weaken economic growth and harm U.S. competitiveness globally. A higher corporate tax rate would also burden millions of working families through lower wages, higher prices, steeper tax bills, and reduced retirement savings.

LOWER WAGES FOR WORKING FAMILIES

• A corporate tax hike would cost a typical American household thousands of dollars a year in lower wages. These findings reflect the overwhelming body of research showing that an increase in corporate tax rates results in lower wages for working families.

• According to the nonpartisan Congressional Budget Office, American workers bear more than 70 percent of the corporate income tax burden. As such, workers can expect to shoulder a majority of any corporate tax increase  

HIGHER PRICES

• Nearly one-third of a corporate tax increase is passed on to consumers in the form of higher prices, according to a study from the National Bureau of Economic Research (NBER.)

• The NBER also found that the price increases are particularly pronounced for lower-priced items and products by low-income households. 

MASSIVE JOB LOSS

• Eliminating the 2017 tax reforms and raising the corporate rate would eliminate 1 million jobs in the first two years, and 500,000 jobs each year after for the next decade, according to a study conducted by the National Association of Manufacturers.

REDUCED RETIREMENT SAVINGS

• A corporate tax increase will reduce stock values by diminishing businesses’ future cash flows. This will have wide reaching implications as more than 50 percent of American families own stock in some form – a large percentage of which is held in retirement and pension accounts.