Senator Elizabeth Warren (D-Mass.) is continuing her push to raise taxes, trying to persuade moderate Democrats and those opposed to tax increases to accept progressives’ tax increases.
For years, we’ve heard Democratic politicians criticize corporations that employ millions of people for not paying higher taxes. That might sound like a great idea – if it were realistic. Corporations will never pay their “fair share” of taxes. If Congress ultimately decides to raise the corporate tax, it will be a tax on consumers, because those corporations will raise their prices to cover their costs and offset the taxes they would otherwise pay.
Warren thinks it is a good idea raise the corporate tax rate during an election year:
At the end of the 2025 tax reform process, enormous corporations will have to pay higher taxes. A typical billionaire will have to pay a higher tax rate than a typical middle-class family. Wealthy tax evaders will have to sweat because the IRS has enough money to enforce the law.
Warren added:
Look at the Bush tax cuts. Why did they cost $8 trillion? Because his Democratic successor, President Obama, negotiated a deal with Republicans that made almost all of Bush’s ephemeral cuts constant.
She continuationrepeating the same arguments Democrats have been making for years – that these tax increases would support child care and infrastructure.
A little money for impoverished children or a modest tax break for middle-class families is still a lousy deal when we can’t fund child care or infrastructure because the richest among us are still getting away with billions in tax breaks.
If Warren gets her way, these corporations will shift their profits overseas – to countries with low tax rates. The idea of corporations paying their fair share is a pipe dream. The argument is that everyone should pay their fair share, and if we can just get that tax rate passed, we could start to pay down our national debt. But as mentioned, raising the corporate tax would just be a tax on the consumer.
During his rally, Trump spoke about an issue that most Democratic politicians never discuss: a tax cut for the middle class.
President Trump in Virginia: “Instead of a Biden tax increase, I will pass a Trump tax cut for the middle class.” pic.twitter.com/e8VpomgUxK
— MAGA War Room (@MAGAIncWarRoom) 28 June 2024
That’s the last thing consumers need, with prices already higher than they were four years ago. But unlike millions of Americans living paycheck to paycheck, Warren isn’t struggling, so she can afford to talk about absurd policies.
.@larry_kudlow sets the record straight regarding President Trump’s tax cuts. #CPAC2021 #AmericaUnCanceled pic.twitter.com/RQcXladRR2
— CPAC (@CPAC) 28 February 2021
Due to Trump’s Tax Cuts and Jobs Act of 2017, the statutory corporate tax rate rose from 35 percent to 21 percent. When the tax cuts expire in 2025, the corporate tax rate will return to 2017 levels. Perhaps if corporations pass on more of their costs to consumers than they have done so far, Democrats will understand that their policy idea just won’t work the way they think it will, and lose moderate voters as well.
