The Biden Administration has proposed raising the Corporate Tax Rate to ‘partially’ pay for its huge spending bills on Infrastructure and “Human Infrastructure,” totaling more than $4 Trillion. Many Americans think changing the business tax rate does not affect them, but it does. The best way to understand this is how Working Americans “benefited” from the 2017 Tax Cut.
In just its first 2 years after being implemented, the 2017 ‘Tax Cuts and Jobs Act’ saw real median household income surge, and the unemployment rate hit its lowest level in 50 years. The gains by poor and minority groups were even more impressive, with employment surging among these groups, and poverty rates for Blacks and Hispanics hitting their lowest levels in 60 years. Lower-wage earners were starting to see their wages grow at a faster rate than their white-collar counterparts, just prior to the pandemic in late 2019.
The gains for workers’ wages & salaries were largely made possible by ‘lowering taxes for businesses.’ This allowed businesses to ‘increase their investment’ in new projects, equipment, and/or new workers. In addition to the benefits for every day Working Americans, shareholders also enjoyed incredible success with all of the new business investment. Any workers that have a 401(k) with their employer, or similar retirement plan, also likely benefited if they were invested in stocks. To counter a common Democratic talking point, it is not only “rich shareholders” that own stocks; more than half of American households own stocks, too, mostly through their retirement plans. I would aim to increase that share even further by pushing to introduce legislation that included a ‘Personal Finance’ Education Course for our High School Students. (see Education – High School). What parent would not want their child to have a Financial Education course before they entered college and/or the working world?
Back to the original topic, the cruel irony about a proposed business tax hike is that Democrats ‘claim’ to care for the poor and low-income groups, but it is their plans to increase taxes on corporations that will likely end up hurting poor and low-income people the most. As mentioned earlier, this same group had benefited the most on a percentage basis just prior to the pandemic in late 2019. The plan to increase business taxes would be bad enough, but Biden’s Big Spending Plans cannot be entirely paid for by a business tax hike and taxing rich people more. The truth is millions of other Americans like you would also be hit with a tax increase to finance all of the new spending in Washington.
So, it’s time we be honest with the American people, and encourage our lawmakers to exercise some fiscal restraint, thereby avoiding personal or business tax hikes in the first place. I would live up to the promise of running as a Fiscal Conservative if elected to Congress, keeping tax rates low and spending limited. I hope you agree with me that the best way to ‘invest’ in our Working Americans is to create the conditions for our businesses to expand and flourish in the first place. And that is done by keeping tax rates low.
*Current Democratic Representative Mark Takano voted “AGAINST” the 2017 Tax Cuts and Jobs Act that helped millions of Working Americans