How Biden’s Tax Plan Could damage the American Economy, forever.

The impact of Biden’s tax hike is far more damning to the economy than a normal corporate tax increase. Here’s why:

Joe Biden’s infrastructure bill will raise corporate tax rate to 28%, from 21%.

By: Mo Gerstley

‘‘Damn it! I’m sick and tired of ordinary people being fleeced’’ President Biden said in front of the press on Wednesday, after being asked about the potentially 28% increase in corporate taxes under his Infrastructure plan. Biden seemed too quickly to dismiss any concerns over the potentially damning tax hike, after the major economic collapse following the pandemic. While Biden’s passionate assertion may make you believe that these moves are for the better, let me reassure you that this is probably the worst thing to do right now. President Biden said that higher corporate tax won’t hurt the economy, on the contrary they’ll create jobs and stipulate the economy. But this has been repeatedly proved wrong by economists. The economic theory well known as the ‘‘ Laffer curve’’ shows how high marginal tax rates can discourage work, saving, investment, and innovation, while specific tax preferences can affect the allocation of economic resources. It exhibits the large discouragement and collapse of productivity in industry after large tax increases and shows how raising corporate tax rates wont stipulate the economy, despite what Joe Biden says. But whats most damaging about the tax increase is the timing. In the past year 114 million people to lose their jobs over 2020. Corporations faced a large hit as well. Over 100,000 establishments have closed due to the virus restrictions, many were small business's, but many were large business's. The NASDAQ-100 fell 7.4%, followed by another 12.4% over the next two weeks. The S&P 500 reacted similarly, falling 10.6% between late January and March, and another 14.9% in early March. Rising the corporate tax is the last thing we need. This can be too detrimental at this stage. And therefore, it could damage the American Economy, forever.

GerstNation is a multi media-political network with news articles, podcasts, YouTube videos, and more.