Washington, DC – The National Association of Manufacturers (NAM) is out with a new analysis of the Biden Administration’s tax hike proposals which shows that tax increases included in the recently released infrastructure plan will end nearly one million jobs in the US economy. The economic analysis comes on the heels of the Administration’s “American Jobs Plan,” touted as their plan to revive infrastructure. Critics of the plan say that it spends little on roads and bridges compared to the funds dedicated to a laundry list of longstanding progressive priorities that have little to do with infrastructure. Senate Minority Leader McConnell said: “It’s called infrastructure, but inside the Trojan horse it’s going to be more borrowed money, and massive tax increases on all the productive parts of our economy.”
The study “Dynamic Estimates of the Macroeconomic Effects of Tax Rate Increases and Other Tax Policy Changes,” undertaken by Rice University economists John W. Diamond and George R. Zodrow and commissioned by NAM, analyzes the effects of proposed tax increases, including raising the corporate rate to 28 percent, repealing the 20 percent small business deduction, and enacting a number of other tax changes recommended by the Biden administration.
NAM President and CEO Jay Timmons said in a statement on the study: “As we slowly emerge from the economic catastrophe caused by COVID-19, American businesses are at a pivotal point in our nation’s history. Manufacturers can, and should, lead the economic recovery in the wake of the pandemic. But this study tells us quantitatively what manufacturers from coast to coast will tell you qualitatively: increasing the tax burden on companies in America means fewer American jobs. One million jobs would be lost in the first two years, to be exact.”
AMAC Action President Bob Carlstrom said: “This important and timely analysis by NAM shows how damaging the full tax hike agenda of the Biden administration could be if fully implemented. At a time when businesses are struggling to build back and keep workers employed, job-killing tax increases should be off the table. The Administration should be doing everything they can to encourage job creation as businesses recover from the pandemic. This study shows that the Biden tax proposals would do the opposite, in eliminating good-paying jobs at the worst possible time.”
The Biden Administration is set to propose a number of additional tax increases to fund what they may call the “American Family Plan.” Please stay tuned to AMAC and AMAC Action for the latest news and economic analysis on the Administration’s tax proposals.
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