Home Entrepreneur Will Biden's proposed tax increase discourage companies from hiring?

Will Biden’s proposed tax increase discourage companies from hiring?


A recent survey found that most CEOs disagree with the president’s plan to raise corporate tax rates.

April 13, 2021

2 minutes of reading


As the president joe Biden Prepare to push with one Overhaul of the country’s corporate tax code, a recent survey from Business Roundtable shows that The CEO doesn’t have to be on board.

Yesterday, the non-profit lobbying group – representing nearly 200 CEOs from US companies, including Apple, 3M and Lowe’s – announced the results of the study. Perhaps unsurprisingly, a significant number of the 178 CEOs questioned between March 8 and 19 believe the increase in U.S. domestic and international tax rates, according to the statement. organizational press, “having negative effects on business expansion, recruitment and wage increases, investment in research and development (R&D) and innovation, and the United States’ competitiveness in the background. global economy. “

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About 98% of respondents say an increase corporate tax rate between 21% and 28% will have a “moderate” to “very” significant adverse effect on the competitiveness of their business. About 71% of the respondents said that the salary increase will affect the number of people they can hire and two-thirds believe it will slow the rate of wage growth. The majority of respondents (75%) added that this increase would have a negative impact on R&D investments.

“The proposed increase in taxes on job-creating jobs will slow the US recovery and hurt workers,” organization president Joshua Bolten said in a statement. “This survey tells us that raising taxes on America’s largest employers will lead to reduced capacity to hire, slower wage increases for workers, and reduced investment in research, and development – all key components needed for a strong economic recovery.When American companies can compete in the world, they can invest in America and help create more jobs, pay higher salaries and support all of their stakeholders. “

Biden is hoping to raise corporate tax rates to help finance His $ 2 trillion worth of infrastructure and employment plans, although he faced fierce opposition from Republican lawmakers. The tax increase will eliminate changes to the corporate tax code made under the former President Trump’s Employment and Tax Cut Act of 2017.

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