Washington, D.C. – Joe Biden, Mark Kelly, and Senate Democrats are pushing a radical economic agenda that includes 40 tax hikes on Arizona families and job creators to pay for a reckless spending spree that will send our nation on the path towards socialism. As Arizonans recover from the impacts of the pandemic, local job creators are warning that if the Democrats’ reckless tax and spending spree passes, “Arizona’s economy – and the American economy writ large – could falter.”
READ MORE from a Phoenix job creator about the disastrous impacts the Mark Kelly-endorsed reckless tax and spending spree would have on Arizona families and job creators.
Arizona is still clawing back from the pandemic, but things sure seem to be on the upswing.
There are now 3.4 million Arizonans working full- or part-time, the highest number ever. This is a smidge better than before the virus hit our state in earnest.
Unfortunately, lawmakers in D.C. now are debating a measure that could undo much of that progress. The budget bill that President Joe Biden and almost all congressional Democrats are pushing contains a sweeping increase to the corporate income tax rate, along with other onerous business tax provisions that will hamstring growth.
If this effort succeeds, Arizona’s economy – and the American economy writ large – could falter.
That’s a tax rate higher than the EU pays
Progressive Democrats hope Americans will believe that the bulk of these new taxes will be paid by billionaires and trillion-dollar behemoths like Apple, Amazon and Google.
But they’re not being candid. In Arizona, our state’s corporate tax rate is 4.9%.
If Congress raises the corporate income tax rate to 26.5%, as the House has suggested – or even 25%, as other policymakers want – Arizona businesses of all sizes would be stuck paying roughly 30% or more of their profits to the state and federal government. That’s a tax rate higher than companies pay in China and most of the European Union.
Businesses seeking to boost their exports, mostly in the state’s growing manufacturing sector, would be especially hard hit.
The U.S. remains the only developed country in the world with a global minimum tax that applies to U.S.-based companies, but not their foreign competitors. Biden and the Democrats want to raise this minimum rate, further disadvantaging globally engaged American companies.
The Seidman Research Institute at Arizona State University, in collaboration with Ernst & Young, has calculated that if some of these international tax changes go into effect, 266 Arizona-based firms with 100 employees or more will be affected, costing our state between 1,508 and 27,728 jobs.
It’ll make Arizona businesses less competitive
These companies aren’t all corporate giants – and even if they were, higher taxes on big companies inevitably trickle down to smaller vendors and suppliers, who see less business as a result.
The Biden tax increase would be taking money away from small technology companies, locally owned restaurants and family farms. These tax increases mean business owners will hire fewer workers – and pay them less for their labor […]
Arizonans would also see rising utility bills due to the Biden tax increase. Under regulation by the Arizona Corporation Commission, utilities are required to pass on to their rate-payers all increased costs – including higher taxes. That comes on top of an increase in the price of oil to more than $80 a barrel, the highest level in three years.
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