https://www.cato.org/blog/10-reasons-against-corporate-tax-increase
Here are the 10 reasons briefly:
- Our federal‐state corporate tax rate is already higher than the global average.
- Higher taxes would undermine investment in factories, machinery, and other productive assets.
- Innovation would slow as businesses cut research spending and investment in advanced technologies.
- Wage growth would slow as reduced investment would undermine productivity.
- Higher taxes on corporate foreign earnings would harm domestic workers and operations.
- Since corporate taxes ultimately land on individuals, it is more transparent to collect taxes directly from individuals so they perceive the full cost of government.
- When tax rates rise, corporations avoid and evade taxes more.
- The Democratic plan would increase tax complexity and unfairness by adding dozens of special‐interest breaks.
- The plan would damage to the economy, yet may not even benefit the government in the long run.
- It is unlikely that the higher spending funded by the tax increase would benefit society more than the private spending it displaced.
