Corporate Tax Hike Would Result in 1 Million Jobs Lost, Study Says

A business group study is finding one million jobs could be lost if President Joe Biden’s proposed corporate tax hike, among other policy changes, goes into effect.

The National Association of Manufacturers’s (NAM) study, conducted by Rice University economists, found that if policies including the increase to 28 percent corporate tax rate, as well as other changes, went into effect then it “would result in less economic activity and 1 million jobs lost in the first two years.”

The study’s calculation includes changes like “20% deduction for certain pass-through business income” being repealed “immediately,” the increased corporate tax rate, the “corporate alternative minimum tax” being “reinstated,” eliminating “expensing (100% bonus depreciation) of most investments in depreciable assets,” among other changes.

Biden’s proposed infrastructure plan titled the “American Jobs Plan” costs $2.25 trillion and it includes increasing the corporate tax rate from 21% to 28%. His plan also proposes establishing a minimum global tax.

The study found that if the changes examined occurred then total hours “would fall by 0.7% initially before moderating,” resulting in “an employment decline of approximately 1 million full-time jobs in 2023.” The study adds, “those jobs would still be gone in 2026 before stabilizing.”

Additionally, it found, “The average annual reduction in employment would be equivalent to a loss of 600,000 jobs each year over 10 years.”

The NAM study also says: