How Higher Corporate Taxes Could Impact Your Community

September 27, 2024
U.S. Chamber of Commerce

The U.S. Chamber of Commerce has created a new interactive map that reveals how a higher corporate tax rate would affect local economies nationwide.

This is what they're saying:

"Insights from the U.S. Chamber of Commerce show how a spike in the corporate tax rate would make it harder for businesses to grow, invest, and create jobs. 

Big picture: Competitive tax rates help fuel economic growth that benefits everyone by driving investments, job creation, and better pay. However, the potential for a dramatic increase in America’s corporate tax rate would have real consequences for businesses, workers, and families nationwide. 

The backstory: Before the 2017 Tax Cuts and Jobs Act (TCJA), the U.S. had one of the highest corporate tax rates globally, pushing jobs and investments overseas. The TCJA lowered the rate from 35% to 21%, leading to:

• Higher wages for workers.

• Increased spending on improving businesses.

• Stronger performing local industries. 

The risk ahead: Many of the tax reforms enacted in 2017 are scheduled to expire at the end of 2025. Recently, some policymakers have expressed support for raising the corporate income tax to offset the cost of other priorities, with several proposing to increase the corporate rate from 21% to 28%. 

The result would be a potential loss of an estimated $910 billion from the economy over the next decade that could lead to:

• Higher prices for consumers. 

• Lower wages and fewer job opportunities. 

• Reduced investment returns to shareholders, including retirement savings accounts."

Read more here.