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ICYMI: Biden’s tax hike slows economic growth, cuts employment

March 13, 2021

Key Takeaways: 

  • New findings from the Tax Foundation show that increasing the corporate tax rate from 21% to 28% would reduce GDP, the broadest measure of goods and services produced in the country, by nearly 1% and eliminate 159,000 jobs. It would also reduce workers’ wages by 0.7%.
  • Hiking the tax rate paid by corporations to 28% would cause the federal-state combined tax rate to roughly 32%, the highest statutory tax rate in the 37-member Organization for Economic Cooperation and Development harming U.S. economic competitiveness and increasing the cost of investment in America.
  • Biden repeatedly pledged to roll back former President Donald Trump’s 2017 Tax Cuts and Jobs Act, which lowered the corporate tax rate from 35% to 21%, during his presidential campaign.

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