On August 11, after the Senate passed the bipartisan infrastructure bill and budget resolution, US President Joe Biden gave a speech in the East Room of the White House in Washington, discussing his “rebuild better” economic growth and job creation agenda. 2021.
Evelyn Hokstein | Reuters
The Business Roundtable, a large and powerful group of well-known corporate leaders, said on Tuesday that the corporate tax hike proposed by the Democratic Party is one of the biggest threats to company investment, recruitment and growth plans in the foreseeable future.
The Business Roundtable stated that its third-quarter CEO survey revealed that CEOs are mainly concerned about three issues: difficulty in finding and retaining qualified employees, possible increase in corporate tax rates, and slow Covid-19 vaccination.
“The tax increase for the largest job creator in the United States by nearly $1 trillion – almost three times the net corporate tax relief after the 2017 tax reform – will be one of the largest corporate tax increases in history,” Business Roundtable President and CEO Joshua Bolten said. “Increases in taxes on job creators will make it more difficult for U.S. companies to compete and will hinder investment in the United States.”
The Biden administration and Congressional Democrats are working hard to pass a 3.5 trillion dollar bill to modernize and expand the U.S. public safety net that affects most Americans. The bill broadly seeks to address poverty, address key climate risks, and provide more worker benefits. As centrist Democrats push for cuts, the final price tag may be lower.
To help pay for one of the largest bills in U.S. history, the Democratic Party proposes to increase the corporate tax rate to 26.5%. Former President Donald Trump’s 2017 tax legislation reduced the corporate tax rate from 35% to 21%.
The party also proposed a maximum personal income tax rate of 39.6%, a 3% surcharge on personal income of more than $5 million, and a capital gains tax of 25%.
The business roundtable will conduct a quarterly survey of some CEOs in the United States to keep abreast of the obstacles and disadvantages faced by the company. The BRT conducted a current poll between September 2 and September 21, and received 160 responses.
The roundtable survey also showed that CEOs are still optimistic about the overall U.S. economy, but said they are now slightly less optimistic than the second quarter due to declining sales expectations.
The organization’s survey shows that CEOs are working harder to increase employment and continue to be keen on large capital projects such as new factories and equipment.
The comments of Doug McMillon, Wal-Mart’s chief executive, indicate that business leaders broadly support the $1 trillion bipartisan physical infrastructure plan submitted by Congress.
“There is an urgent need to invest in our country’s infrastructure,” said Macmillan, who is also chairman of the roundtable, in a prepared speech.
He added: “We applaud Congress for arranging a vote on the bipartisan infrastructure investment and employment bill this Thursday.” Significant investments have been made in transportation, water, energy and communication systems.”
Speaker of the California House of Representatives, Nancy Pelosi, said over the weekend that her House will vote on the bill on Thursday. The infrastructure bill includes $110 billion in new funding for roads, bridges, and other major ground projects, $39 billion for public transportation, and $15 billion for electric vehicles and buses.
Pelosi has been struggling to obtain a long list of key votes, not only to pass President Joe Biden’s economic agenda, but also to pass a financing bill before the government shutdown and the imminent US default later this week.