On President Joe Biden’s first day in office, he set a record by eliminating 11,000 jobs with a mere signature.
This happened when Biden revoked the necessary permit for the development of Keystone Pipeline; since this executive order, many blue-collar workers are hurting. Republicans and even a few Democrats want the 46th president to amend his executive order shutting down the pipeline; although, Biden’s executive action against Keystone Pipeline still stands.
When Biden ran for office in 2020, Republicans warned that his presidency would engender the demise of countless jobs. The nation is now witnessing this play out as more of Biden’s policies are revealed to the public.
According to the Tax Foundation, Biden’s decision to increase America’s corporate tax rate would plunge hundreds of thousands of U.S. workers into unemployment.
What a 28% corporate tax rate would mean for the U.S. economy
The Tax Foundation did not mince words when explaining the negative aftermath that would follow a corporate tax rate of 28%.
Due to the Tax Cuts and Jobs Act (TCJA) passed under the Trump administration, the current corporate tax rate is at 21%. However, if Biden gets its way, this rate will jump by 7%.
Per the Tax Foundation, a 28% corporate tax rate would destroy 159,000 U.S. jobs; a 7% increase from the current corporate tax rate would additionally cause American investment costs to increase while driving down economic creation and wages by 0.8% and 0.7%.
The Tax Foundation furthermore states that most of these devastating impacts would occur within ten years of the 28% corporate tax rate’s inception.
The danger of raising taxes on corporations
Democrats have long stated that increasing taxes on corporations will help the working class and fund social programs; however, William McBride of the Tax Foundation says otherwise.
According to McBride, increasing corporate taxes makes it harder for these businesses to (re)hire workers. Of course, getting Americans back to work after months of massive unemployment is critical for the betterment of the economy; however, a 28% corporate tax rate would increase costs for these establishments, hence impeding their abilities to (re)hire workers.
Biden’s proposed tax hikes come amid pushes for mass amnesty, continued school closures, and anti-energy independence policies.