President Biden’s Tax Proposal Would Deal Devastating Blow to American Businesses, Workers and Families

WASHINGTON, D.C. – The RATE Coalition released the following statement in response to President Biden’s call for an increase in America’s federal corporate tax rate.

“Economic research shows that raising the federal corporate tax rate is the most economically damaging tax increase, leading to significant reductions in employment and incomes.  President Biden’s proposed 28% tax rate would raise the combined U.S. federal-state tax rate up to 32.8% – higher than the average rate of G20 nations, much higher than the average rate in the EU, and significantly higher than China.  The result would be a devastating and unnecessary blow to American businesses, workers, and families. 

“The current rate of 21% was put in place in 2017 and has led to an increase in productivity, real wages and economic growth.  U.S. companies are contributing more in federal taxes at the 21% rate than ever before, showing that a lower, not higher, tax rate can raise more revenue.

“We encourage policy makers to help the American economy thrive and disregard proposals to make our domestic businesses less competitive in the global marketplace.” 

Background: RATE Coalition members employ 50 million Americans working in all 50 states.  Our objective is to maintain America’s globally competitive corporate tax rate and create the best climate for our nation’s economy, job creators and workforce to succeed into the future. Learn more at RATEcoalition.com.

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