By Cordia Scott Hennaman, MNE Tax
More than two dozen groups representing US companies have joined together to fight US President Joe Biden’s tax hikes on companies and high-earning individuals.
“Every time we turn around it seems there is a new proposed tax on America’s businesses,” said Eric Hoplin, president and CEO of the National Association of Wholesaler-Distributors, which is leading the new coalition, called America’s Job Creators for a Strong Recovery.
Speaking to FOX Business News on May 25 Hoplin said that America’s businesses rallied to keep the economy moving through the pandemic but are still struggling. Now is not the time to add an increasingly difficult and job-killing tax burden, he said.
America’s Job Creators for a Strong Recovery maintains that tax increases on American companies and their employers would stall US economic recovery rather than jumpstart it and dampen the economic benefits of wise infrastructure spending.
The group plans to focus on advertising, grassroots efforts, and media campaigns in pivotal states represented by moderate House and Senate Democrats “who hold the keys to this effort,” American Supply Association said in a statement.
“The pandemic has taxed individually and family-owned businesses enough — taxing them again while they are still struggling to recover just goes too far,” said Main Street Employers Coalition Executive Director Chris Smith. “These tax hikes would put the path of the recovery at such risk, so we need to make sure the voice of Main Street is heard loud and clear with the people and places that matter most.”
Biden’s corporate tax plan released on March 31 would hike the US corporate tax rate to 28%, raise the global minimum tax and calculate it on a country-by-country basis, and add a “book income” minimum tax for the largest corporations, among other things.
Biden’s “Made in America Tax Plan,” would completely pay for his accompanying infrastructure investment plan, the “American Jobs Plan,” over a 15-year period, the Biden Administration claims.
A recent Tax Foundation report estimates that the Biden tax plan would significantly raise taxes on the activities of U.S. multinational corporations, whether the activities are located domestically or abroad. “From the perspective of U.S. multinationals, the proposal would increase their federal tax liabilities by $104 billion in 2022 and $1.2 trillion over 10 years, increases of 81 percent and 72 percent relative to their tax liabilities under current law,” it said. The Biden plan would also increase the tax burden on the foreign operations of US multinationals by more than USD 714 billion over the next decade, according to the report.
Cordia Scott Hennaman
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