Biden Infrastructure Bill’s Corporate Tax Hikes Will Cripple The Economy

To pay for its initial $2 trillion in spending, the White House's plan raises the federal corporate tax rate to 28 percent from the previous 21 percent.

The U.S. corporate tax rate will be the highest of the 37 countries in the Organisation for Economic Co-operation and Development once France implements their reduction to 25.83 percent over the next year.

Treasury Secretary Janet Yellen told Congress during her confirmation hearing that she could "Assure the competitiveness of American corporations even with a somewhat higher corporate tax," but only with the cooperation with fellow Organisation for Economic Development and Cooperation countries to prevent a global "Race to the bottom." Unfortunately, it appears that the Biden administration is ignoring the cooperative aspect Yellen thinks is required for this plan to work, instead choosing to go ahead on the comparative tax increase as many of the aforementioned countries are actively decreasing their tax rates in an effort to stimulate their economies after COVID and improve their competitive advantage.

With so many foreign countries enacting tax policies that will make their economies more appealing to investment and entrepreneurship, the U.S. economy is in danger of falling behind.

The infrastructure bill does attempt to prevent existing U.S. companies from evading these taxes by increasing the tax on foreign income from 10 percent to 21 percent.

Along with typical slowed growth associated with less money remaining with the company, the comparatively high taxes would harm U.S. companies' ability to financially compete with those that are foreign-based due to tax discrepancies.

Although intended to pay for infrastructure, the Biden administration's tax hikes would severely harm the U.S. economy and weaken us relative to other countries.

https://thefederalist.com/2021/04/02/biden-infrastructure-bills-corporate-tax-hikes-will-cripple-the-economy/