The Breitbart News reported Thursday 8 that according to a study by the National Association of Manufacturers, Biden’s tax hike plan would cost the U.S. economy 1 million jobs in the first two years, reduce GDP by $117 billion by 2023 and reduce ordinary capital or investment in equipment and structures by by $80 billion in 2023.
The study, authored by Rice University economists John W. Diamond and George R. Zodrow, calculates the impact of a number of measures, including raising the corporate tax rate to 28 percent, increasing the tax rate for the top income bracket, repealing the 20 percent pass-through deduction , eliminating the deduction for certain expenses, and taxing ordinary income as capital gains for individuals earning more than $1 million.
Jay Timmons, president and chief executive officer of the National Association of Manufacturers, summarized the study’s findings, stating, “America’s manufacturers have raised wages and benefits, hired more American workers and invested in our communities since Trump’s tax reforms were enacted in 2017. If these reforms are undone, manufacturing workers will lose jobs, growth and pay raises. We should be building on Trump’s tax reforms, not pushing back. But the conclusion of this study is inescapable, and if the tax increases that Biden has brought to other countries with clear advantages are followed through, we will see a significant reduction in American job creation.”
Executive Timmons added, “There are well-meaning people who are suggesting that the U.S. should raise its corporate tax rate, but not as high as the proposed 28 percent. The United States can’t afford that, especially now. “
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