Taxes will have to go up (for someone)
April 7, 2021. Summarized by summa-bot.
Compression ratio: 27%. 2 min read.
The US is entering a weird place where even some big money execs -- the kinds of people who usually build businesses by doing everything they can to avoid paying federal taxes -- agree the government needs to raise funds to keep things rolling.
(CNN)The US is entering a weird place where even some big money execs -- the kinds of people who usually build businesses by doing everything they can to avoid paying federal taxes -- agree the government needs to raise funds to keep things rolling.
Here's what he said: "We recognize this investment will require concessions from all sides -- both on the specifics of what's included as well as how it gets paid for (we're supportive of a rise in the corporate tax rate). "
Continued prosperity, he seems to say, requires the gusher of government money is not turned off and that Biden can successfully pivot from squeezing trillions out of Democrats in Congress to pay for emergency stimulus spending to squeezing trillions out of Democrats in Congress to update the country's infrastructure for a new, post-fossil fuel economy.
I say he'll need to squeeze the money out of Democrats since Republicans were united against the Covid relief bill and all signs indicate they'll now unite against the infrastructure proposal by labeling it as a tax hike.
The big GOP accomplishment of the Trump years was a massive and permanent corporate tax cut.
Treasury Secretary Janet Yellen laid out the balance sheet, blaming the GOP tax plan for the red ink as she pitched the president's plan to raise the corporate tax rate.
Noting that corporate tax collections have fallen to their lowest level since World War II, Yellen said Wednesday that Republicans' 2017 Tax Cut and Jobs Act did not lure new production or investment to the US.
And: The Republicans' 2017 tax cuts, which slashed the corporate tax rate to 21% from 35%, meant that the share of tax revenues collected as a share of the economy fell to 1%, the White House said.
Corporate tax hike: Biden would raise the corporate income tax rate to 28%, up from 21%.
Corporate inversions: Biden would make it harder for US companies to acquire or merge with a foreign business to avoid paying US taxes by claiming to be a foreign company.