President Joe Biden discusses his “Build Back Better” agenda for economic growth and job creation after the Senate passed the bipartisan infrastructure bill and budget decision earlier this morning during a speech in the East Room of the White House in Washington, Dec. 2021.
Evelyn Hockstein | Reuters
The Business Roundtable, a large and powerful group of prominent business leaders, said Tuesday that the corporate tax hike proposed by the Democrats is one of the biggest threats to corporate investment, hiring and growth plans anytime soon.
The Business Roundtable said its third-quarter CEO survey showed business executives have three main concerns: difficulty finding and retaining skilled workers, a possible rise in the corporate tax rate, and a slow roll-out of the Covid-19 vaccine.
“A nearly $ 1 trillion tax hike for America’s biggest job creators – nearly three times the net corporate tax cut from the 2017 tax reform – would be one of the biggest corporate tax hikes in history,” said Joshua Bolten, President and CEO of Business roundtable. “Tax increases for job creators would make competition for US companies more difficult and hinder investment in America.”
The Biden administration and Democrats in Congress are working to pass a $ 3.5 trillion bill to modernize and expand the US public safety net that would affect most Americans. The main aim of the bill is to fight poverty, address critical climate risks and provide enhanced benefits for workers. The final price will likely be lower as the center Democrats push for cuts.
In order to pay one of the largest bills in the country’s history, the Democrats have proposed raising the corporate tax rate to 26.5%. Former President Donald Trump’s 2017 tax legislation lowered the corporate tax rate from 35% to 21%.
The party has also proposed a top tax rate of 39.6%, a 3% surcharge on individual income over $ 5 million, and a capital gains tax of 25%.
The Business Roundtable conducts a survey of some of the country’s CEOs every quarter to keep abreast of the hurdles and tailwinds businesses are facing. The BRT carried out the current survey between September 2nd and September 21st with 160 responses.
The roundtable poll also showed that CEOs remain optimistic about the US economy as a whole, but are now slightly less optimistic than they were in the second quarter, given declining sales expectations.
The organization’s survey suggested CEOs are making greater efforts to bolster the payroll and continue to get excited about large-scale capital projects like new factories, equipment, and the like.
Walmart CEO Doug McMillon’s comments suggested the $ 1 trillion bipartisan physical infrastructure plan before Congress is widespread among corporate leaders.
“Investments in our country’s infrastructure are urgently needed,” said McMillon, who is also chairman of the round table, in prepared remarks.
“We applaud Congress for calling a vote next Thursday on the bipartisan law on infrastructure investment and jobs,” he added. “We urge every member of the House of Representatives to vote yes to this unique opportunity to make significant investments in America’s transportation, water, energy and communications systems.”
House spokeswoman Nancy Pelosi, D-California, said over the weekend that her chamber will vote on the bill on Thursday. The Infrastructure Bill includes $ 110 billion in new funding for roads, bridges, and other large surface projects, $ 39 billion for public transportation, and $ 15 billion for electric vehicles and buses.
Pelosi has worked hard, with a long list of critical voices, not only to get President Joe Biden’s economic agenda passed, but also to pass a funding bill before the government closes later this week and threatens US bankruptcy.
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