Current rate: 21%
China’s rate: 25%
Biden’s rate: 28%
On CNBC’s Squawk Box this morning, Joe Biden vowed to raise the 21% U.S. corporate tax rate all the way up to 28% — a 33 percent increase in the rate.
Biden would impose on Americans a higher corporate tax rate than Communist China’s 25%.
Biden’s 28% tax rate is also higher than the United Kingdom (19 percent), Canada (26.8 percent), and Ireland (12.5 percent).
President Trump and congressional Republicans lowered the federal corporate tax rate from the Obama-Biden era 35% rate down to the current 21% rate as part of the Tax Cuts and Jobs Act. When Trump took office, America’s corporate rate was the highest in the developed world.
The corporate tax cut was the cornerstone of the previously robust American economy. Before COVID-19, the Trump economy routinely created well over 100,000 private sector jobs per month. Nominal wage growth enjoyed 19 consecutive months of over 3 percent growth, and unemployment was consistently below 4 percent, a 50-year record low.
As the focus turns towards reopening the country and getting Americans safely back to work, Biden plan to raise the corporate rate would harm American workers, stunt job and wage growth, and erode our competitive advantage in the global economy.
Keep track of Biden’s tax hikes at www.ATR.org/HighTaxJoe