Former President Donald Trump's campaign said Monday that President Joe Biden's proposal to hike the corporate tax rate would result in the loss of 1 million jobs.
In his $7.3 trillion budget proposal for the 2025 fiscal year, Biden wants to raise the corporate tax rate on billion-dollar companies from 15% to 21% and the overall corporate tax rate to 28%, CNBC reported Monday. He also wants a minimum 25% tax on the unrealized income of the wealthiest households.
"Raising the corporate tax rate to 28% would result in an immediate loss of approximately 1 million American jobs over the first two years, and 600,000 jobs every year over the next 10 years," Trump's campaign said in a news release on its website.
The campaign cited a study by Rice University economists John W. Diamond and George R. Zodrow for the National Association of Manufacturers.
"Raising the federal corporate tax rate to 28% would increase the combined state and federal corporate tax rate in the United States to 32.8%, one of the highest in the world and three times as much as our biggest competitor, China," the campaign said, citing a report by the National Retail Federation.
The campaign said the 2017 Tax Cut and Jobs Act passed by Congress and signed by Trump "benefited the working and middle classes the most."
Filers earning less than $50,000 a year saw a tax cut of up to 26%; filers earning less than $100,000 saw a tax cut of up to 17%. The legislation also lowered the corporate tax rate from 35% — then the highest of the 38 Organization for Economic Co-operation and Development nations — to 21%, and it brought the combined tax rate more in line with other OECD nations, "making American companies far more competitive," the Trump campaign said.
"One-third of the burden of a 28% corporate tax rate would fall on workers, through job losses and decreased wages," the campaign said, citing the study.
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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