Dr. Zev Zelenko was a true American hero. Support his foundation AND your immune system with his Z-DTox supplements to make your immune system clean, resilient, and resistant.
Democrats in Washington are looking to bolster their tax-and-spend reputation as they try to pass an “infrastructure” package currently slated to cost taxpayers roughly $3.5 trillion in spending and untold sums in tax increases to “pay” for it. Corporate tax hikes along with higher cigarette and income taxes have been proposed to offset some of the spend-a-thon. But although some of the new tax proposals have made headlines, others have garnered less attention than they deserve.
The Democratic drive to raise the federal corporate income tax from 21 to 26.5 percent, for example, has been widely reported, while the tax hikes proposed for small businesses, such as S-corporations and partnerships, have not. Reports have focused more on Wall Street than Main Street even though small businesses and partnerships comprise the majority of America’s businesses and Main Street will shoulder a heavier new tax burden than their Wall Street competitors under the new Democratic tax plan. But neither set of tax increases will be good for U.S. businesses or consumers.
American C-corporations currently pay a flat 21 percent federal tax on their profits. Congressional Democrats want them to pay 26 percent — one of the highest corporate tax rates in the world. American small businesses, S-corporations, and partnerships, however, pay taxes according to the progressive income tax scale — with a top individual tax rate that would increase to over 40 percent under the congressional Democrats’ tax plan.
As U.S. businesses — big and small — continue to recover from the pandemic’s stifling economic effects, this is no time to hit them with higher taxes. International economists recommend reducing corporate and capital taxes because they do the most damage, and many states along with much of the industrial world have moved to reduce corporate taxation precisely because lower taxes encourage business growth, hiring, innovation, and higher wages.
Don’t get caught unprepared as things go south. Order a case of five life-saving antibiotics prescribed directly to you by board certified physicians. Use promo code “RUCKER10” for $10 off. Having an emergency supply of antibiotics is crucial before the crap hits the fan.
But Democrats in Washington think they know better and want to make some of America’s small businesses and partnerships the most heavily taxed businesses on the planet. That misguided hubris will threaten jobs and prosperity across the country.
Midwestern states like Ohio, for instance, have strategically reduced their tax burdens to help small businesses grow and compete with larger corporations. Some state policymakers understand that fledgling companies not only create new jobs and spur economic opportunities, but they need to retain their working capital to do it. Syphoning even more small business money to Washington, even from more established firms, undermines those efforts.
Perhaps congressional Democrats need a refresher on how corporate taxes work in the real world. Federal corporate tax increases will either be passed along to consumers through higher wholesale and retail prices, or else leave businesses with fewer dollars to invest in their workers or grow their operations. Either way, American prosperity will suffer under the Democrats’ tax-and-spend proposal.
And so will their competitive advantage. As other countries reduce their corporate tax burdens, their companies can lower prices to attract new customers and pay higher wages to attract new workers — all at the expense of American companies trying to compete in a global market.
Some states have worked hard in recent years to grow their economies and recover from the Great Recession by reducing the tax burdens faced by small businesses. Congress and the Biden Administration seem poised to negate those laudable efforts with one of the largest corporate tax hikes in American history — and many small businesses and their employees may be completely unaware that it’s coming, and that they and their customers will pay the price.
Rea S. Hederman Jr. is executive director of the Economic Research Center and vice president of policy at The Buckeye Institute in Columbus Ohio and Michael G. Franc is a Washington, D.C.-based senior fellow with The Buckeye Institute. From 2013 to 2015 he served as policy director and counsel to then-House Majority Leader Kevin McCarthy.
Photo by Blake Wisz on Unsplash. Article cross-posted from Real Clear Policy.
They’re Trying to Shut Us Down
Over the last several months, I’ve lost count of how many times the powers-that-be have tried to shut us down. They’ve sent hackers at us, forcing us to take extreme measures on web security. They sent attorneys after us, but thankfully we’re not easily intimidated by baseless accusations or threats. They’ve even gone so far as to make physical threats. Those can actually be a bit worrisome but Remington has me covered.
For us to continue to deliver the truth that Americans need to read and hear, we ask you, our amazing audience, for financial assistance. We just launched a GiveSendGo page to help us pay the bills. It’s brand new so don’t be discouraged by the lack of donations there. It’s a funny reality that the fewer the donations that have been made, the less likely people are willing to donate to it. One would think this is counterintuitive, but sometimes people are skeptical because they think that perhaps there’s a reason others haven’t been donating. In our situation, we’re just getting started so please don’t be shy if you have the means to help.
Thank you and God bless!
JD Rucker
