Biden Now Wants to Increase Tax Rates for US Corporations to More than Double that of China

(PresidentialWire.com)- President Joe Biden and his administration are still hard at work trying to cobble together a massive social spending package that they can force through Congress with only the support of members of the Democratic Party.

One of the main ways that Biden and his cronies have proposed paying for the multi-trillion-dollar plan is through massive tax increases on the wealthy and corporations.

This is all happening, of course, at a time when the U.S. economy continues to struggle to fully rebound from the coronavirus pandemic. GDP numbers for the third quarter were far below what many economists have expected. It was the slowest quarter in the recovery thus far.

While the jobs report for October was promising, the one from the month before was devastating. As the country heads into the home stretch of 2021 and the holiday shopping season — a crucial one for retailers everywhere — the last thing businesses need is to face higher taxes.

Yet, Biden is pushing forward with a plan that would increase the corporate tax rate to a level higher than many other countries, including China.

Biden’s proposal would increase the U.S. corporate tax rate to 26.5% from the current rate of 21%. The global average for the corporate tax rate is 23%. Corporations in China pay a standard corporate tax rate of 25%, while some industries in the Communist country even pay as low as 15%.

In addition to the increase in the overall tax rate, the Tax Foundation reported that Biden’s plan would create “a new 3% tax on modified adjusted gross income above $5 million, in addition to the current law 3.8% net investment income tax.”

The Association of Mature American Citizens reports that, in essence, it would make the integrated tax rate — including taxes at the state level — be 56.6% on corporate income, which is more than twice the rate in China.

That would essentially give the U.S. the “third-highest integrated tax rate in the developed world.

“The only nations with a higher rate would be Ireland and Korea. As destructive as this would be for American enterprise, some Democrats are going even further.”

The amazing thing is the 26.5% corporate tax rate is much less than Biden initially wanted. He was calling for a monumental rate of 28%, which could cripple business investment. If there’s one way to incentivize companies not to hire, it’s to significantly increase how much they pay in taxes, which directly correlates to a decrease in their profits.

This is just not good policy at any time, but especially when the economy is still reeling from the ongoing COVID-19 pandemic. Why institute such a major, overnight increase in corporate taxes, when just a few months ago, the government was doling out billions to help businesses that have been struggling because of the coronavirus?

It really makes no sense. But then again, neither does a lot of what the Biden administration does.