Home » Economy » Biden corporate tax hike could hit middle-class Americans – here's how
Biden corporate tax hike could hit middle-class Americans – here's how
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President Biden on Wednesday unveiled a proposal for the largest corporate tax rate in decades as a means of paying for his nearly $2.25 trillion spending package – an increase that could indirectly hurt middle-class Americans.
The White House is billing the eight-year initiative, dubbed the American Jobs Plan, as a once-in-a-generation infrastructure fix that will make massive investments in the nation's roads and bridges, as well as transit systems, schools and hospitals. The measure will be funded by raising the corporate tax rate to 28% from 21% – rolling back part of former President Donald Trump's 2017 tax cuts – and increasing the global minimum tax on U.S. corporations to 21% from 13%.
WHAT'S IN BIDEN'S $2.2T INFRASTRUCTURE AND TAX PROPOSAL?
But critics say hiking taxes on corporations will ultimately end up hurting workers in the form of lower wages, possibly violating the president's campaign promise to not raise rates on anyone earning less than $400,000.
"The corporate tax, it's just not absorbed by the companies, it's shouldered by workers in the terms of lower wages," John Kartch, vice president of communications at the right-leaning Americans for Tax Reform, told FOX Business. "That's something to consider, even a left-of-center economist will tell you that some measure is borne by lower wages."
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