NAM: 25% Corporate Tax Rate Would Result in Major Job Losses
Association head Jay Timmons advocates for infrastructure investment and retaining competitive tax policies rather than higher tax rates.
May 17th, 2021
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WASHINGTON As Congress and the Biden administration continue to make progress on negotiations to invest in our nation’s failing infrastructure, the National Association of Manufacturers released a new study detailing the short- and long-term damage to the American economy if the corporate tax rate were raised to 25%, the top marginal tax rate were increased, the 20% pass-through deduction were repealed, certain expensing provisions were eliminated and more.
In April, the NAM released a study on the harmful impacts of rolling back key provisions of the Tax Cuts and Jobs Act, including raising the corporate tax rate to 28%.
Economic Data Shows Fewer Workers Losing Jobs and Americans Eager to Spend
A suite of stronger-than-expected economic data on jobs, retail sales, and corporate earnings came out Thursday, reinforcing the view that a potential boom, much-anticipated by economists, may be getting more traction.
Overall, the data shows fewer workers losing their jobs, Americans eager to spend more, and corporate profits getting fatter, sending all three major Wall Street indexes higher on the opening bell.
On the jobs front, the Labor Department said in a release (pdf) that the number of U.S. workers filing for unemployment fell last week to 576,000. That’s the lowest number of weekly jobless claims since the onset of the pandemic, which sent them surging above 6 million in March 2020. Economists polled by Reuters predicted 700,000 jobless applications last week.
Republicans Won t Support Rollback of Trump Tax Cuts to Pay for Biden s Infrastructure Plan: McConnell theepochtimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theepochtimes.com Daily Mail and Mail on Sunday newspapers.
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Partly cloudy skies early will give way to cloudy skies late. A few flurries or snow showers possible. Low near 25F. Winds NNW at 10 to 20 mph..
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Partly cloudy skies early will give way to cloudy skies late. A few flurries or snow showers possible. Low near 25F. Winds NNW at 10 to 20 mph. Updated: April 12, 2021 @ 6:41 pm
The
study, âDynamic Estimates of the Macroeconomic Effects of Tax Rate Increases and Other Tax Policy Changes,â published by Rice University economists John W. Diamond and George R. Zodrow, is based on several tax proposals suggested by the Biden administration.
Biden has proposed increasing the corporate tax rate from 21% to 28%, reinstating the corporate alternative minimum tax, increasing the top individual tax rate, and amending several other aspects of the tax code.
Their findings conclude âquantitatively what manufacturers from coast to coast will tell you qualitatively: increasing the tax burden on companies in America means fewer American jobs. One million jobs would be lost in the first two years, to be exact,â National Association of Manufacturers President and CEO Jay Timmons said in a