Holtz-Eakin: Biden’s Proposal to Raise the Corporate Tax Rate to 28% Would Impose a $500 Billion Tax on People Making Less than $300,000

EXCERPT:

HOLTZ-EAKIN: "If you allow the expensing of investment, expensing of R&D, then no matter how you choose to enhance the productivity of your company, whether it's equipment, new business models, raising the skills of your workers, you get immediate deduction. The tax playing field is absolutely level. If you get right of the interest deductibility, you now remove the distortion of how you finance those productivity investments. That’s what 2025 should be all about: getting a more efficient tax code. Second thing that I would point out is, everyone agrees that the corporate is not paid by corporations. Indeed, the president’s proposal that raises the rates to 28% would impose a $500 billion tax on people making less than $300,000. That’s a Treasury Department estimate. So, it would violate his pledge not to tax people under $400,000. But if we’re going to be realistic and we're going to tax those people, let’s do it in a more efficient fashion that doesn't threaten international competitiveness. Let’s go to the individual side and broaden the base there. That’s what tax reform should be about, broadening the base of both the individual and the corporate side."