Posted: Oct 09, 2021 12:01 AM
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Editor’s note: This piece was co-authored by Maroun Medlej
In early May President Biden proposed several tax increases, but stated that those who make under $400,000 per year “will not pay a single penny in taxes.” And he has repeated that claim as he tries to get his legislation passed. Of course, he did not mean they would pay no taxes, just that they would not pay increased taxes under his program. He’s going to tax the rich and corporations. It’s a great sales pitch—corporations should pay their fair share and you ordinary folks won’t feel a thing. Unfortunately, it is just not true.
The plan to raise the corporate income taxes is blind to the fact that corporations are only legal entities. They actually serve as tax collectors for the federal government. Biden proposes to raise the current rate seven points, to 28 percent, a whopping 33 percent increase. House Democrats have reduced that grab to 26.5 percent, but the impacts would