Calls Proposal ‘Blueprint for Shrinking the Economy,’ Imperiling Recovery
Washington – The PACE—Promote America’s Competitive Economy—Coalition today issued the following statement after President Biden announced his infrastructure plan:
“The President’s plan outlined today amounts to a $2 trillion tax increase on globally engaged American companies. At a time when Congress and the Administration should be focused on policies that will help spur the economic recovery, these proposed tax hikes would imperil it.
“This proposal is a blueprint for shrinking the economy, stifling U.S. global competitiveness and reversing the benefits of the 2017 tax reforms, including historically low unemployment and higher wages. Corporate rate increases would make the U.S., the least competitive of any developed country in the world and lead to a shrinking of investment in the United States, fewer jobs and lower wages for average American workers. These proposed increases would also negatively hit American investors—particularly the retirement assets of hard-working American families.
“The U.S. is currently the only country with a foreign minimum tax. These newly proposed tax increases could lead to unwelcome results, such as a return to inversions and creating an incentive for foreign takeovers of the assets of U.S. companies.
“At a time when so many small businesses and individuals are struggling to gain their footing in the economic crisis created by the pandemic, it is confounding why the President would propose putting the U.S. international tax system in a worse position than it was prior to enactment of the 2017 tax reforms.”
The PACE Coalition is dedicated to a robust economic recovery and long-term prosperity for all Americans. Learn more at http://KeepPACE.us and @KeepPaceUS.