Biden Admin Planning Corporate Tax Hike – Here’s Why The Only Losers Will Be Middle-Class Americans

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After automotive giant Ford announced it’s moving a project worth almost $1 billion dollars from Ohio to Mexico, the Biden administration remains silent. In December, Biden vowed to be “the most pro-union President” but has revealed plans of raising the corporate tax rate. Whilst on the surface, an increase might seem of benefit to workers, it’s anything but. The new plant Ford built after Trump lowered the corporate tax rate is now moving to Mexico because of Biden’s tax increase. In the process of the plant moving, workers were laid off leaving scores for the unemployment line.

Biden announced he plans to raise the corporate tax rate from 21% to 28%. Despite corporations now being required to pay more taxes from their revenue once the increase goes into effect, the burden will only fall on the consumer. For instance, McDonald’s – or on a personal level, your favorite local restaurant – gets notice that material costs (supplies have to be ordered through official channels) will be increasing from anywhere between 10 and 30 percent in the near future. How will corporations be accounting for this increase other than raising prices, laying off workers, and cutting hours?

Corporations will not simply “eat” these lost profits and will instead recover them from an already struggling American worker. Aforementioned layoffs will further stretch thin the average worker, who is already operating on a skeleton crew and more often than not, doing the work of multiple people. The profit deficit could also be made up from budget cuts, hiring freezes, spending freezes, even the selling or shutting down of operation – entire businesses.

It isn’t fantastical to think if corporations begin to lose business and their wide profit margins, that the wealth will be taken overseas. Corporations will move to a foreign country where they don’t have to pay taxes, which again only impacts the end-consumer who will be unemployed and unable to pay for goods if corporations start shuttering. The money will simply be gone. Will there be any other option save for taxing the middle class at an even higher rate when the wealth leaves?

Furthermore, the Trump administration spoke out against and criticized outsourcing in the automotive industry. When Trump promised “America first”, he meant it. In 2017, Ford canceled a project in Mexico and instead invested $1.2 billion into 3 Michigan factories after Trump merely called the company out for planning a project in Mexico.

The same story in Pennsylvania – Biden’s supposed “stomping grounds” – just like what’s happening in Ohio.

In Roaring Springs, PA. the Appvion Inc. paper mill plant is slated to shut its doors for good on April 1. 293 will be out of work, 250 of those jobs being unionized. State Senator, Judy Ward said she and other local officials “were all completely blindsided” by the plant’s closing. A plant founded in 1866 closed in just months under the Biden administration. If that isn’t an indicator of Biden’s real priorities for everyday Americans, I don’t know what is.

Only time will tell whether or not the stakes are as dire as they seem. Democrats, content to simply claim that they champion the average American, never seem to put their money where their mouth is. When Senator Tim Scott of South Carolina introduced a criminal justice reform bill in June 2020, there was no debate or compromise regarding the matter of the bill – Democrats instead chose to tank it. Scott’s bill would have made lynching a federal crime, tied federal grants to the use of police bodycams as well as grants for the elimination of police chokeholds, and even placed stringent requirements on “no-knock” raids.

Sure, though, let Democrats make their platform Black Lives Matter but that sure didn’t seem the case when they shot down Tim Scott’s bill addressing there were problems within our justice system that needed fixed.