Business Roundtable survey shows executives are worried about corporate tax hike
U.S. President Joe Biden discusses his ‘Build Back Better’ agenda for economic growth and job creation following early morning Senate passage of the bipartisan infrastructure bill and the budget resolution, during a speech in the East Room at the White House in Washington, August 11, 2021.
Evelyn Hockstein – Reuters On Tuesday, the Business Roundtable, a group that includes prominent business leaders, stated that Democrats’ corporate tax increase is the biggest threat to the growth and investment plans of companies in the foreseeable future.| Reuters
The Business Roundtable, a large and powerful group consisting of prominent corporate leaders, said Tuesday that Democrats’ proposed corporate tax hike is one of the greatest threats to companies’ investment, hiring and growth plans in the foreseeable future.
Business Roundtable’s third quarter CEO survey found that top executives are concerned about three things: difficulty finding qualified workers and increasing corporate taxes. They also worry about slow Covid-19 uptake.
“Increasing taxes on America’s largest job creators by almost $1 trillion—nearly three times the net corporate tax cut from 2017 tax reform—would be one of the largest corporate tax increases in history,” said Business Roundtable President & CEO Joshua Bolten. Tax increases on the largest job creators in America would reduce American companies’ ability to compete globally and hinder investments in America.
Biden’s administration and congressional Democrats seek to pass $3.5 trillion to expand and modernize America’s public safety net. This bill would have a major impact on most Americans. This bill aims to address poverty, reduce climate risks, and expand worker benefits. The final price tag will likely be lower as centrist democrats push for cuts.
Democrats proposed increasing the corporate rate from 26% to 26% to help fund what will be the biggest bill in American history. In 2017, former president Donald Trump reduced the corporate tax rate by 21% to 35% through tax legislation.
A top income tax rate for individuals of 39.6% was proposed by the party, along with a surcharge of 3% on incomes above $5million and capital gains taxes of 25%.
To keep abreast of what the tailwinds and hurdles are, The Business Roundtable does a quarterly survey of CEOs across the country. With 160 responses, the BRT carried out its latest poll from Sept. 2 to Sept. 21.
Roundtable’s survey showed that executives remain optimistic about the U.S. economy. However, they indicated they feel less confident now than in the second quarter due to lower sales expectations.
According to the Roundtable survey, CEOs seem to be working harder to boost payrolls as well as continuing to support big-ticket capital projects such new equipment, factories and other similar investments.
According to Walmart CEO Doug McMillon, there was widespread support from corporate leaders for the bipartisan $1 trillion physical infrastructure plan that is before Congress.
McMillon is the Roundtable chairman and said, in prepared remarks, that investment in America’s infrastructure is essential.
He said, “We applaud Congress” for setting a Thursday vote on the bipartisan Infrastructure Investment and Jobs Act. We urge all members of the House of Representatives, to support this unique opportunity to invest in America’s transport, water and energy systems.
Nancy Pelosi (D-Calif.), House Speaker, stated over the weekend her chamber would vote on the bill Thursday. New funding of $110 Billion for infrastructure projects includes $39 billion for transit. $15 billion is for electric buses and vehicles.
Pelosi is hard at work, obtaining a number of crucial votes in order to both pass President Joe Biden’s economy agenda and pass a funding measure before the government closes later this week. This will also help to avoid a U.S. default.