And you just have to look at retail to see why. Before the Tax Cuts and Jobs Act went into effect, the retail sector had one of the highest effective tax rates of any sector of the economy and had fewer deductions and tax preferences to help lower its tax debt. In addition, the retail trade is disproportionately burdened by tariffs. Though they still paid some of the highest corporate tax rates in any industry in the US, retailers – especially small businesses with low profit margins – were grateful when the tax rate cut the tax rate from 35%, which was the highest in the industrialized world. to 21%.
Immediately after the new tax law came into effect, retailers explained how they reinvested those savings in staff development and raised wages for workers. And with one in four American workers engaged in retailing, any benefit to the sector will benefit American families across the country.
With the Biden administration and Democrats in Congress inevitably turning their attention to the 2022 midterm elections, including the Senate battlefield race that is taking place here in Wisconsin, it is critical that Democrats focus on issues around the kitchen table such as, how they will create and help jobs in the state Wisconsinites thrive.
One way to do this is to make sure that all businesses are paying their fair share now, rather than raising taxes on businesses. If a company finds a dubious way to evade its tax debt, increasing the tax rate will not result in a corresponding increase in sales. By implementing initiatives like the global minimum tax, instead of raising corporate taxes, Democrats can ensure that companies that pay the reasonable amount of tax are not overwhelmed and laid off workers, and companies that evade taxes can be prosecuted for justice , and the funds from tax revenues owed can be used for the common good.