I am often asked whether President Joe Biden is intentionally trying to dismantle the American economy with his stupid energy, climate change, crime, border, inflation, and debt policies. But I have always believed that these policies are driven not by malice but by deeply flawed ideology.
Then I was watching Biden’s State of the Union address, and when he said, “We’re going to make corporations pay their fair share,” Democrats in Congress burst into applause. (Related: Stephen Moore: Here are some of Joe Biden’s biggest economic rants)
Read more about Biden. new Trillion tax planning, it’s hard to think of a plausible explanation other than that he’s trying to make American industry less competitive. Mr. Biden’s tax plan would hold U.S. companies back with higher corporate tax rates than their major competitors, near the highest corporate tax rates in the world.
If God forbid these policies to be adopted, would they be the big winners here? Even China and Russia, which are communist and authoritarian countries, would have lower tax rates on their businesses than ours.
This will lead to a flow of capital from the United States to competitors, much like water flowing downstream.
I first met Donald Trump in early 2020, when I showed him a graph showing that the United States has the highest tax rates of all competing countries. When President Trump saw this graph, he immediately said, “This is like a program that gives every country we compete with a head start.”
His goal was to empower American businesses with the lowest interest rates in the world. I couldn’t get it down to 15%, but I did get it down to 21%.
This has brought more than $1 trillion back to the United States from around the world, from Switzerland to Bermuda to Euroland. Although it was despised as a “tax cut for the wealthy,” it helped increase the incomes of working-class Americans. For the first time in decades, factories are moving from Mexico to Maryland instead of the other way around, as President Trump once said, thanks to lower taxes and other pro-growth reforms.
On the other hand, in Ireland, Corporate tax rate 12.5% It helped make this country the fastest growing land in all of Europe.they even have fiscal surplus. That is correct. Lower tax rates brought in the arrival of revenue.
But rather than solve the problem wisely, Biden and the Democrats would rather bash big corporations that “don’t pay their fair share.” Ironically, the only industry in America that pays virtually no business taxes is green energy giants. (Related: John Stossel: What Joe Biden Won’t Tell You About Renewable Energy)
Why not start by making them pay their fair share? This is clearly not zero.
The White House estimates their plan will raise $500 billion from businesses over 10 years. Of course, the company is owned by his 130 million Americans with 401k plans and other retirement plans. It’s not just the top 1% that gets zapped here.
Economist Kevin Hassett, who was chairman of President Trump’s Council of Economic Advisers, has shown that corporate tax rates are statistically inversely related to workers’ wages. Lower tax rates mean higher wages for workers. Blue-collar Americans will therefore pay the lion’s share of the burden of Biden’s tax increases.
But the Biden economic team denies the scientific basis. They reject the real-world evidence that high tax rates inhibit job growth and investment, ignore the Irish experience, and benefit competitors around the world while protecting all workers and consumers in the United States. It pretends that the rich bear all the burden of taxes that harm the world. .
This stupid tax policy will keep America alive, both literally and figuratively.
Stephen Moore is a visiting fellow at the Heritage Foundation and a senior economic advisor to Donald Trump. His latest book is “Govzilla: How the Relentless Growth of Government is Undermining Our Economy.”
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