Former President Donald Trump and President Joe Biden's chief of staff recently met with the Business Roundtable in Washington to discuss corporate tax rates and economic policies. Trump expressed his desire to further reduce the corporate tax rate to 20%, emphasizing the need for tax cuts, lower inflation, and increased oil production. On the other hand, Biden's representative highlighted the importance of global alliances and independent institutions like the Federal Reserve in fostering trust and supporting U.S. capitalism.
The Business Roundtable, representing over 200 CEOs, has launched a campaign to maintain the current corporate tax rate at 21% and advocate for business-friendly changes to the tax code. While Trump aims to cut taxes, Biden plans to raise the corporate tax rate to 28% to fund programs for the middle class.
Research suggests that Trump's previous tax cuts boosted business investment but did not generate enough growth to offset the costs. The Congressional Budget Office estimates that extending the expiring tax cuts would add $4.9 trillion to the deficit over a decade. Business leaders argue that lower taxes enhance global competitiveness, leading to increased hiring and technological investments.
Some CEOs warn that higher tax rates could result in reduced investments in the U.S., potentially leading to higher consumer prices, limited wage growth, and negative impacts on shareholders. Biden's proposed budget includes a $2.2 trillion increase in corporate taxes over 10 years, with a significant portion coming from raising the corporate tax rate to 28%.
As the debate over corporate tax rates continues, both parties are focused on balancing economic growth with fiscal responsibility. The clash between Trump's push for further tax cuts and Biden's call for increased corporate taxes sets the stage for a contentious battle over tax policy and economic priorities in the coming years.
