Washington’s Proposed Tax Increases Would Impact All of Us

  • Stagnant or lower incomes: Higher corporate taxes will reduce jobs and pay. It’s estimated that after-tax income would decline by an average of 1.7% if the proposed tax increases became law. Higher taxes on corporations mean fewer funds available for investments that boost productivity growth; less productivity growth in turn will suppress wages.
  • Fewer jobs: Jobs will disappear because corporations will lack the funds for research and innovation. If U.S. companies are forced to pay higher taxes at home and abroad than their foreign competitors, jobs and wages of U.S. employers will contract as their foreign competitors gain market share and expand. The Tax Foundation estimates the current proposal to increase corporate taxes will cost the U.S. 303,000 full-time equivalent jobs.
  • Higher prices: Higher corporate taxes can also be passed on to consumers in the form of higher prices on the goods and services they buy. Some estimates are that as much as 30% of corporate taxes are passed along to consumers through higher prices.
  • Weaker stock performance and retirement savings: The income Americans rely on for their savings and retirement from their investment in corporate stock and mutual funds will be diminished by higher corporate taxes, reducing the savings and retirement funds of tens of millions of middle class Americans.

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Alliance for Competitive Taxation

Alliance for Competitive Taxation

The Alliance for Competitive Taxation promotes U.S. jobs, investment and rising incomes through the establishment of a competitive U.S. tax system.