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News > U.S.

Business Coalition Opposes Biden's Tax Hike Proposals

  • Image illustrating tax calculation.

    Image illustrating tax calculation. | Photo: Twitter/ @FulcrumPartners

Published 26 May 2021
Opinion

Previously, the U.S. President urged corporations and the wealthiest 1 percent of Americans to "pay their fair share."

Twenty-eight industry groups formed a coalition to oppose President Joe Biden's plan to raise taxes, arguing that such policy would hurt the U.S. economy in the wake of the COVID-19 pandemic.

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"Main Street businesses took a big hit during the COVID crisis, and the latest Biden plan is a triple threat to individually- and family-owned businesses still struggling to recover," said Chris Smith, executive director of the Main Street Employers coalition.

"It would raise taxes on what they earn, raise taxes when they are sold, and raise taxes when they are passed from one generation to the next," Smith argued, adding that the combined policies represent "one of the most anti-Main Street plans ever proposed."

The National Association of Wholesaler-Distributors also announced that it is joining forces with dozens of associations to oppose the tax hikes, forming the "America's Job Creators for a Strong Recovery."

The U.S. President unveiled two major spending plans with a multi-trillion-dollar price tag and called for tax hikes to offset the massive cost, urging corporate America and the wealthiest 1 percent of Americans to "pay their fair share."

Calling the 2017 tax cut "a huge windfall" for corporate America and those at the very top, Biden said recently it had poured billions of dollars into the pockets of CEOs, widening the pay gap between CEOs and their workers.

Biden said his tax policies, which include raising the corporate rate (from 21 percent to 28 percent), the top personal income tax rate (from 37 percent to 39.6 percent), and the capital gains rate (from 20 percent to 39.6 percent for households earning over US$1 million), will help pay for what he proposed to spend in 15 years.

Republican lawmakers have lashed out at Biden's proposals, calling his multi-trillion-dollar spending plans "liberal daydream," and arguing that the tax hikes would lower wages, kill jobs and shrink the U.S. economy.

In a counterproposal to Senate Republicans last week, the White House lowered the overall price tag of Biden's US$2.3-trillion infrastructure plan to US$1.7 trillion. Another spending proposal focusing on childcare and education would cost US$1.8 trillion.

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