Economists say President-elect Joe Biden’s plan to raise the corporate tax rate will undo President Donald Trump’s reshoring efforts as it will likely send some American companies packing and keep others overseas, harming the economy.
Biden campaigned on bumping the corporate tax rate from 21% to 28% in order to help fund his plans for green energy policies, infrastructure projects, and other ambitious, progressive initiatives. According to the Tax Policy Center, Biden’s overall tax plan will raise about $2.1 trillion over 10 years, totaling 0.8% of the gross domestic product. Democrats’ control, while narrow, over the House and Senate ultimately boosts the odds of Biden’s tax hikes going into effect.