Biden’s tax-heavy budget
By Bruce Thompson
March 12, 2023
President Joe Biden has released his budget for fiscal 2024. He is proposing trillions of dollars of tax increases, including raising the corporate tax rate from 21% to 28%.
With inflation still high and the economy struggling, raising taxes would be a major economic mistake. Economic research has shown that increasing the corporate tax rate is the most damaging to economic growth, resulting in lower wages, higher prices, and fewer jobs. While Biden keeps claiming his tax increase would only affect the largest corporations, his corporate tax rate increase would hit small businesses.
Although many small businesses are set up as pass-through entities that pay individual income taxes, others are structured as C-corporations, subject to corporate income tax. More than 1 million are small companies with business receipts below $500,000, and most of them have fewer than 20 employees. None of them are the big corporations Biden says are not paying their fair share.
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