A new report from the Center for Budgetary and Policy Priorities shows that increasing taxes on companies makes tax laws fairer and does not affect economic recovery.
An important finding from the report:
Another important consideration, particularly with regard to the recovery from COVID-19 and its economic consequences, is the deep economic and racial disparities that this crisis has both highlighted and exacerbated. While millions of families and lower-income individuals continue to face financial hardship due to COVID-19 and the economic impact, those at the top continued to thrive in large measure during these troubled times – a dichotomy known as the “K-shaped recovery .
Raising taxes for those struggling in this crisis could create headwinds for the recovery, but a corporate tax hike would hit the wealthier people who have already recovered from the recession (or have never seen it before) ). A robust and equitable recovery requires policymakers to prioritize still-troubled budgets, and that is exactly what it will do when corporate revenues are increased to fund public investment.
The entire report describes the reasons Biden’s infrastructure plan will help the country, and increasing taxes on businesses won’t hurt jobs, recovery, or the wider economy.
For example, the economy is supported more by the growth of jobs and economic activities that lead to infrastructure investment than could be harmed by increasing taxes on businesses. A tax increase for companies would also make tax legislation fairer.
All Republicans’ fear of levying taxes to pay for infrastructure is not based on fact. Republicans lie. Biden’s infrastructure and employment plan would be a boon to the economy.
Republicans will not be swayed by reality, but the report shows that President Biden is right to push his plan forward.
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Mr. Easley is the Founder / Senior Editor, White House Press Pool, and a Congressional Correspondent for PoliticusUSA. Jason has a bachelor’s degree in political science. His thesis focused on public order with a specialization in social reform movements.
Awards and professional memberships
Member of the Society of Professional Journalists and the American Political Science Association