Let’s talk about the corporate tax rate

Oct 17, 2018 | Communications •

Democrats have pledged to take away your tax cut  if given the opportunity. In their minds, raising corporate taxes helps ‘the little guy’ get ahead. Here’s the problem with that logic: it’s illogical.

Until the Tax Cuts & Jobs Act was signed into law nearly ten months ago, the United States had the highest corporate tax rate in the developed world, and one of the highest overall. Our job market was stalled, two percent growth was being dubbed ‘the new normal’, and we were hemorrhaging companies (and jobs) to other countries.

All that changed with tax reform. The overall benefits are widespread: historically low unemployment (3.7 percent), 7.1 million job openings (more than workers available to fill them), and 90% of Americans are receiving bigger paychecks than they were before tax reform. The United States is now the most competitive economy in the world for the first time in a decade! You can find even more good news at Better.gop.

But here’s why raising the corporate tax rate again — which the Democrats would like to do — is problematic. Raising taxes on businesses limits their flexibility and ability to hire. Money that could go towards benefits and pay instead gets shipped over to Washington, D.C. Time that could be spent with family or coming up with the next great idea instead gets spent on paperwork and compliance. If we want America to retain its newfound competitive status, we need to do the opposite of all that.

Lowering the corporate tax rate is what directly led to the increased benefits, wages, and community investments. It’s also what caused the decrease in utility bills in all 50 states.

The companies offering better parental leave are doing so because we lowered the corporate tax rate.

The companies that increased wages and hired more workers did so because we lowered the corporate tax rate.

Businesses that are offering health plans to their employees for the first time ever are doing so because we lowered the corporate tax rate.

And the utility companies that passed their savings on to their customers? Those savings only exist because we lowered the corporate tax rate.

Democrats talk at-length about helping the middle class, expanding benefits, and lowering prices for families that need it. But not only did they vote against the very legislation that’s making more jobs, fairer taxes, and bigger paychecks a reality, they want to take it all away from you. Huh?

Democrats appear to be more concerned with raising taxes on American companies than helping middle-class families find relief. If Democrats are serious about their plans to raise the corporate tax again, they’ve made their priorities known — and they don’t align with the American people’s.