Bipartisanship would be nice change
It would be nice if the country could act in a more bipartisan manner.The economy certainly does.
For example, per the Brookings Institution ,the counties that voted for Biden produced 71% of our GDP and the counties voting for Trump produced 29%.That’s like 100%.
Higher corporate taxes have impact on working class
President Biden has only been in office for a few months and American companies are already considering their exodus as they prepare for Biden’s crippling tax plan. This plus the impending Biden tax increases on dividends, capital gains and other investment income; if the Biden plan becomes law the U.S. would have the highest overall tax.
Corporations respond to increasing taxes two ways. The first option is passing the taxes on to be ultimately paid by some combination of higher prices for customers, lower wages for workers and lower returns on investment for shareholders. In other words, President’s Biden’s corporate tax increases will hit the middle class harshly: in the size of their pay packages, in what they pay for goods and services and in the value of their 401(k)s.
Or the second option, corporations move operations to a tax-friendly country. That has already begun as the Ford Motor Company will be moving their $900 million planned investment plant from Avon Lake, Ohio to a new site in Mexico.
Economists have done extensive work showing how lower corporate tax rates result in higher wages. Higher after-tax profits mean more corporate investment, which means more productive workers, whom companies can afford to pay more. Trump’s tax cuts worked; tax hikes now will stifle economic recovery from COVID-19.