Corporate Tax

98% of CEOs say elevating Biden’s corporate tax price will harm their companies, in accordance with survey

Top line

As Congress returns from hiatus this week and President Biden’s ambitious infrastructure plan is high on the Democratic agenda, a new Business Roundtable poll found that 98% of CEOs surveyed believe the plan’s corporate tax rate of 28% will affect the competitiveness of your company.

US President Joe Biden talks to Vice President Kamala Harris about infrastructure investments … [+] from the Eisenhower Executive Office Building on the White House campus on April 7, 2021 in Washington, DC.

AFP via Getty Images

Key factors

Of the 178 CEOs surveyed, 75% said that increased taxes will have a negative impact on their company’s investments in research and development.

Another 71% said the tax hikes would have a negative impact on their employability.

Crucial quote

“To recover from the COVID-19 pandemic, it is necessary to maintain competitive tax policies to revitalize the US economy and provide more opportunities for Americans,” said Gregory J. Hayes, CEO of Raytheon Technologies Corporation, in a press release from the Business Roundtable.

Chief critic

“Here you have 51 or 52 Fortune 500 companies that haven’t paid a penny in taxes in three years,” President Biden said last week. “Come on man. Let’s get real.”

Big number

55. This is how many large US companies – all part of the Fortune 500 or the S&P 500 index – did not pay corporation tax in 2020 thanks to credits and deductions, according to an analysis by the Institute for Taxes and Economic Policy.

Key background

President Biden campaigned for a platform for tax hikes for the big business and the rich – including an increase in the corporate rate from 21% to 28%. These and other tax increases will help fund Biden’s $ 2 trillion infrastructure plan to modernize American infrastructure, revitalize manufacturing, and create jobs in the aftermath of the economic devastation caused by the coronavirus pandemic. Republicans oppose the increases in Biden’s plan, as do moderate Democratic Senator Joe Manchin of West Virginia, a key vote in that chamber that would have made a 25% increase more appropriate. Last week, Biden said he was “ready to negotiate a hike” below the 28% corporate rate he was promoting – as long as the plan can be paid for another way.

What to look for

Biden will meet with a non-partisan group of lawmakers on Monday afternoon to discuss his infrastructure plan.

further reading

The new civil war: blue states water the rich; Red States Sue To Cut Taxes (Forbes)

Biden Says He Is Ready To Negotiate 28% Corporate Tax Rate Hike (Forbes)

New Details On Biden’s $ 2 Trillion Tax Plan Revealed – Here’s What We Learned (Forbes)

Who will be the biggest loser from Biden’s tax hikes? (Forbes)

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