US foyer group attracts up battle plan to beat Biden’s tax hike

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File photo: The word “Tax” was stamped on May 10, 2021 at the Internal Revenue Service (IRS) headquarters in Washington, DC, United States. REUTERS / Andrew Kelly / File Photo

July 6, 2021

David Loader

Washington (Reuters) – U.S. business lobby group supports $ 1.2 trillion bipartisan infrastructure deal, but separate but linked expenses, that Democrats want to pass without a Republican vote. We are preparing to combat the impending corporate tax hike.

The U.S. Chamber of Commerce, National Association of Manufacturers, National Retail Federation, and other well-funded lobby groups use the same arguments that were used in 2017 to ensure significant Republican tax cuts. I intend to do that.

Rachel Bernstein, chief tax advisor for the retail group, said the democratic “reconciliation” law is expected to include new social spending and tax increases.

According to Watchdog’s OpenSecrets.org, the Bernstein group, which spent $ 1.5 million lobbying in the first quarter of 2021, said, “But it’s good to take advantage of a corporate tax hike to cover your expenses. I do not think so. ”

The Byden administration’s proposal to reduce U.S. economic inequality and compete more effectively with China is to provide tax increases for businesses and wealthy Americans in transportation, telecommunications, research, renewable energy, childcare, housing, education, and health care use.

In May, Treasury Secretary Janet Yellen sent https://www.reuters.com/business/us-treasurys-yellen-says-tax-hike-infrastructure-plan-will-boost-profits-2021-05-18 to the United States states . The Chamber of Commerce argued that such productivity-enhancing investments, paid in part by increasing corporate taxes from 21% to 28%, would still increase corporate profits.

The International Monetary Fund announced last week that such investments would fuel US growth over the years and marked its adoption in the new forecast for US GDP of 7% for 2021, the strongest since 1984. ..

Yellen is expected to say at the G20 financial conference in Venice this week that companies will have to pay more for government investments.

Officials in the lobbying group told Reuters that whether US corporations were forced to pay more domestically could get caught up in a battle for the minds and spirits of some moderate Democrats in both the House and Senate. He said he was highly sexual.

Focus on lobbying for cinema and Manchin

These corporations wanted the bipartisan Infrastructure Act and the bipartisan Tax and Expenditure Act to be viewed separately, and believed that doing so could easily undo the latter.

House spokeswoman Nancy Pelosi “blows it away”, however, by insisting that the two bills be passed in parallel, said Eurasia Group’s political risk adviser, US executive director and former Republican leader. John Lieber, a former business advisor to Mitch McConnell, said.

Mr Lieber said this would increase the likelihood of infrastructure spending turning into a party law that would require the support of all Democrats in the Senate, except for a few Democrats.

Business lobbyists are focused on convincing Democratic West Virginia Senator Joe Manchin, Arizona Kyrsten Cinema, and some Democrats that tax hikes will hurt newborn SMEs from the pandemic. I am.

“I’m going to target 10 or 20 of the most vulnerable Democrats in the House of Representatives,” said Tom Spulak, co-head of King and Spording’s advocacy and public policy practices.

“I go to these counties and say first this is bad business and then the Democrats handle it maliciously,” he said, with Democrats excluding tax hikes from infrastructure packages. While watching a partisan tax hike and mentioning that he consented.

A new coalition of 28 corporate groups called American Job Creators for a Strong Recovery is campaigning in Swing State Arizona to get voters to rock the cinema and Senate Democrat Mark Kelly. ..

“This may not be the time to blame tax hikes on companies that have just returned from a pandemic,” said Jade West, head of government for the National Wholesalers Association in Washington. It was. Organizer.

According to https://www.opensecrets.org/news/2021/06/business-coalition-lobbies-against-biden-tax- half of the coalition’s member associations will lobby in the first three months of 2021. 3 million dollars spent. Hike to OpenSecrets.org.

Research show …

Lobbyists and professional corporate groups are conducting research that has challenged the Biden government’s claim that tax and spending plans create millions of jobs.

Tax Foundation, a professional business think tank, has long-term net reduction in GDP due to the American Jobs Plan, which includes both infrastructure and corporate tax increases, according to https://taxfoundation.org/american-jobs-plan. I predict that. At 0.5%, US employment is reduced by 101,000.

National Retail Federation-funded survey https://cdn.nrf.com/sites/default/files/2021-06/TaxHike-2021-EYSTudy-Cobranded.pdf According to accounting firm EY, US GDP is annual. It saved $ 72 billion. When 75% of the tax increase fund public works to increase productivity. EY has converted labor income’s share of GDP loss into a decline in employment of 700,000 people across the economy.

Independent analyzes show a different outlook. Oxford Economics will reduce corporate investment by 1% by the end of 2023, while public investment will hire an additional 2 million people by the end of 2024, according to https://resources.oxfordeconomics.com/hubfs/Bidens_American_Jobs_Plan_will_provide_a_structural_lift.pdf. I predict it will be created. The long-term potential growth will exceed the base forecasts by 0.1% in 10 years.

Surveys: STEUERREICH, CORPORATIONS

Corporate tax revenue has fallen from nearly 40% in the 1940s to less than 7% as a federal source of funding for the United States. This is favored by the Republic Tax Act 2017, which recently lowered the main corporate tax rates from 35% in the long term to 21%. ..

Reuters analysis of this month’s tax data for 2020 https://reut.rs/2SLvhfJ shows that even if the U.S. corporate tax rate is raised to 28% as proposed by President Joe Biden, it will be the largest U.S. company. We found that thanks to generous deductions and deductions under US tax law, we still pay lower effective taxes and higher tax rates (approx. 21%) than our foreign competitors.

According to recent polls, taxing corporations and the wealthy executives who run them to pay for public spending is overwhelmingly popular politically.

Voters polled https://americansfortaxfairness.org/issue/new-poll-shows-overwhelming-support-bidens-plans-raise-taxes-wealthy-corporations in June for left-handed Americans About 69% of the tax for wealthy people with a business similar support of 68% among bipartisan voters who backed the increase.

Among local voters, who are the source of Republican power, polls advocate 55% raising the corporate tax rate to 28% and 58% supporting taxing Americans who earn more than $ 400,000 a year.

“Americans are not on the side of companies here,” said Frank Clemente, executive director of the group. “They want Biden’s $ 4 trillion spending plan and they want to pay for it by taxing the rich and corporations. They want it to be paid for by increasing the deficit. Not me. “

Reuters / Ipsos survey https://www.reuters.com/world/us/many-republican-voters-agree-with-biden-trickle-down-economics-has-failed-2021-04-29 65% But the Majority of Americans are in favor of higher taxes for the rich, and the majority agree that “the US trickle-down economy never worked.”

(Report by David Lawder; edited by Heather Timmons and Andrea Ricci)

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