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Study Warns about Tax Proposals

By Staff Writer April 09, 2021 640

The National Association of Manufacturers released a new study detailing the potential short- and long-term damage to the American economy under tax proposals to increase the corporate tax rate.

The study calculated the effects of increasing the corporate tax rate to 28%, increasing the top marginal tax rate, repealing the 20% pass-through deduction, eliminating certain expensing provisions and more. The negative consequences would include the following:

 

  • One million jobs lost in the first two years;
  • By 2023, GDP would be down by $117 billion, by $190 billion in 2026 and by $119 billion in 2031;
  • Ordinary capital, or investments in equipment and structures, would be $80 billion less in 2023 and $83 billion and $66 billion less in 2026 and 2031, respectively.

 

“Manufacturers want to help President Biden achieve his goal of creating jobs in America and strengthening the supply chain so that our country does not face critical shortages, especially during times of national crises,” said NAM President and CEO Jay Timmons. “Manufacturers can, and should, lead the economic recovery in the wake of the pandemic. But this study tells us quantitatively what manufacturers from coast to coast will tell you qualitatively: increasing the tax burden on companies in America means fewer American jobs.”

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Last modified on Tuesday, 13 April 2021 13:26

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