More than two dozen groups representing US corporations and employers unveiled a new coalition on Tuesday to fight virtually every Democratic plan to increase taxes on self-proclaimed “job creators”.
The coalition of 28 industry groups that banned their guns under the name “America’s Job Creators for a Strong Recovery” argues that increasing taxes on corporations and other businesses will hamper the US economy in the wake of the coronavirus pandemic.
Calling its plans the most ambitious public spending in decades, the White House has stated that the investment is necessary to keep the US economy growing and competitive with other countries, especially China.
But Eric Hoplin, president and executive director of the National Association of Wholesaler-Distributors, which leads the coalition, warned: “The record tax hikes the Democrats are pushing for couldn’t come at a worse time for America’s job-creators to be just starting out recover from debilitating pandemic.
“Employers support smart infrastructure to keep America competitive in the 21st century, but it shouldn’t be used as a Trojan horse to collect record high taxes on American sole proprietorships and family businesses.”
“Done right, a big investment in infrastructure today is an investment in the future and, like a new home, over time – say 30 years – it should be paid for by the users who benefit from the investment,” said the group in an explanation at the time.
Other business leaders, like Amazon’s Jeff Bezos, have said they support the increase after previously being criticized for the amount of taxes they pay in the United States. Countries such as France, Germany, Japan and Italy have also welcomed proposals to introduce a minimum corporate tax floor of “at least” 15% worldwide.
UK Chancellor Rishi Sunak has not yet commented publicly on the proposals, but announced in the March budget that the UK’s corporate tax rate will be raised to 25% by 2023.