Biden offered a strange reason for raising corporate taxes
One of the ways in which President Biden intends to pay for his $2-trillion Green New Deal spending plan is to raise the corporate tax rate. When Biden returned to the White House after spending time with his family for Easter (something you're not allowed to do, according to Democrats), reporters asked him whether it was wise to raise the corporate tax rate, which is currently at 21%, to 28% (an amount greater than the corporate tax in China). According to Biden, not only will the tax rate not be a problem, but it will encourage corporations that haven't paid taxes to start paying. Huh?
One of the most significant aspects of Trump's tax plan was that it lowered the corporate tax rate from 35% — one of the highest in the Western world — to 21%. Not coincidentally, the economy roared once those tax cuts went into effect. For anyone with an understanding of how business works, this wasn't surprising.
Businesses don't actually pay taxes because they're not the point at which the buck stops. Instead, they deal with taxes in four different ways: they increase costs to customers, they reduce employee salaries or numbers, they move the business to countries with lower costs, or they shut down. The corporation itself doesn't end up in the poor house, but all the people affected by its financial decisions just might.
Biden doesn't see things that way. As far as he's concerned, the increased rate not only won't result in higher costs, lower wages, and corporations off-shoring their business; it will somehow encourage corporations to stop using loopholes to avoid paying taxes. At least, that's what he said when reporters waylaid him on his return to the White House.
A reporter actually asked Biden a real question: "Are you afraid that a higher tax will drive corporations to other countries?"
Biden was firm: "Not at all. Not at all." He continued, "Because there's no evidence of that. The tax was 36%. It's now down to 21%. And the idea that... That's bizarre. We were talking about a 28% tax that everybody thought was just fair enough for everybody. The idea... Ya got... Here you have 51 or 52 corporations of the Fortune 500 that haven't paid a single penny in taxes in three years."
And then he wrapped up with a rousing, "C'mon, man! Let's get real."
Is it me, or did Biden essentially say corporations are going to pay all their taxes just because the rates go up? The whole point of being Amazon, one of the richest entities in the world, is that your billionaire owner speaks longingly of paying higher taxes to help the world and then works with his accountants to ensure no tax payments.
In any event, as Bryan Preston has pointed out, at the end of the day, the Biden administration isn't interested in the American economy. Instead, it's pushing a moral argument for raising the corporate tax rate above China's:
The Biden administration's argument for making America less tax-friendly than communist China is not an economic argument, that it would be good for jobs in a recovering economy. That's an afterthought at the most. Team Biden is making a sort of moral argument.
CBS's "Face the Nation" anchor Margaret Brennan pressed Rouse about Biden's proposal to increase the corporate tax rate from 21% to 28% or potentially higher after Rouse said Biden's $2 trillion spending plan is "good for the economy."
"This is 15 years of higher taxes to pay for eight years of spending. Can you really say that's not a cost?" Brennan asked.
"I would say that the reason why the president is proposing these corporate tax increases is because that's just the right thing to do," Rouse said. "He believes we should be… encouraging these corporations to pay their fair share."
Just what is their "fair share"? Why stop at 28%, when 30% is just a couple of points away? Why not 35%? If it's morally right, doing more of it should be even more morally right.
The Democrats are in the grip of a secular religious revival, and we're all going to be forced to worship at the Altar of Marxism, complete with its painful, punitive moral strictures aimed at purifying a nation corrupted by Judeo-Christian values, a free-market economic system, and constitutional liberties.
Image: Biden speaks to reporters about corporate tax. C-Span video.
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