On the campaign trail, President Joe Biden proposed several changes to the corporate income tax, including raising the rate from 21 percent to 28 percent and imposing a 15 percent minimum tax on the book income of large corporations. Since then, some congressional policymakers have also signaled support for increasing U.S. corporate income taxes.
These proposals raise important questions that leaders in Congress and the administration ought to consider before moving forward, especially as the U.S. economy recovers from the COVID-19 pandemic:
- How would increasing corporate tax burdens affect economic growth, investment, revenues, and other key fiscal indicators?
- Who would bear the economic burden of a corporate tax increase, what would the impact be on after-tax incomes, wages, and jobs, and is this a good tool for addressing income inequality?
- How does the current U.S. corporate tax system compare to its competitors and how could increasing overall corporate tax burdens impact America’s competitiveness abroad?
- What is a book income tax and what unique economic and administrative challenges does it raise?
Join us on Thursday, March 18th at noon ET for a timely virtual discussion to learn more about these topics and what policymakers ought to know as they consider changes to the U.S. corporate income tax system.
Tax Foundation President Scott Hodge will moderate the panel, which will include:
- Clemens Fuest, President, ifo Institute – Leibniz Institute for Economic Research at the University of Munich
- Michelle Hanlon, Howard W. Johnson Professor and a Professor of Accounting at the MIT Sloan School of Management
- Martin A. Sullivan, Chief Economist and Contributing Editor, Tax Analysts
- Garrett Watson, Senior Policy Analyst, Tax Foundation