As Congress prepares to come back into session, President Biden’s infrastructure plan is the top priority. The issue at hand is Tax fairness — requiring corporations and the wealthy to pay their fair share to help pay for the American Jobs Plan. President Biden’s current plan and the forthcoming American Family Plan — is good policy AND good politics.
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It was reported today, that Biden’s own pollster is urging Biden to be blunt on taxes. In addition to this, here are two other message guidance resources from John Anzalone, Joe Biden’s 2020 campaign pollster and his current pollster:
- Biden 2020 Pollster Memo: Highlighting Tax Fairness Can Provide Major Benefits to Democrats
- Video of Biden 2020 pollster explaining power of tax fairness message to the president’s campaign and all Democrats
President Biden released his $2.3 trillion American Jobs Plan to invest in infrastructure, green energy, and the caregiving economy. He included in the package his Made in America Tax Plan, which would raise about $2 trillion by making corporations pay more of their fair share in taxes.
Large majorities of voters support making corporations and the wealthy pay their fair share. By including progressive tax reforms in his agenda, President Biden will make crucial investments in working families while creating a fairer tax code and making our recovery more equitable.
Below are some analysis of President Biden’s plan that show the economic boost the US would get from the American Jobs Plan.
Americans For Tax Fairness, Executive Director, Frank Clemente is available for interviews to discuss the American Jobs Plan, the American Family Plan, and how requiring the wealthy and corporations to pay their fair share in taxes will spur economic growth and jobs.
Biden’s Tax & Investment Plans Will Boost Jobs & Growth
- Moody’s Analytics: “The Macroeconomic Consequences of the American Jobs Plan” (4/21)
“The plan does result in substantially more jobs mid-decade, with employment under Biden’s term as president increasing by 13.5 million jobs. This compares with 11.4 million jobs without the plan, and 10.5 million jobs if neither the infrastructure plan nor ARP had become law. Unemployment is also meaningfully lower with the plan, falling to a low of 3.5% by the end of 2024, consistent with the low reached just prior to the pandemic. Labor force participation is also expected to fully recover from the impact of the pandemic by year-end 2024.”
“Long term, the economy enjoys stronger productivity growth. The improvement is marginal through the first half of the decade but will be measurable by decade’s end as the stock of public infrastructure meaningfully increases, adding as much as 0.1 percentage point to annual real GDP growth.”
- “JPMorgan’s Dimon sees economic boom stretching ‘well into 2023’ with infrastructure plan,” The Hill (4/7/21)
“‘I have little doubt that with excess savings, new stimulus savings, huge deficit spending, more [quantitative easing], a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the U.S. economy will likely boom,’ [JPMorgan Chase President and CEO Jamie] Dimon wrote in his annual letter to the bank’s shareholders.”
Biden’s Tax Increases Will Not Hurt The Economy Or Stocks
- “Corporate Taxes Are Wealth Taxes,” The New York Times (4/8/21)
The main cause of the radical decline in tax rates for very wealthy Americans over the past 75 years isn’t the one that many people would guess. It’s not about lower income taxes (though they certainly play a role), and it’s not about lower estate taxes (though they matter too). … The biggest tax boon for the wealthy has been the sharp fall in the corporate tax rate.
“The justification for the [corporate] tax cuts has often been that the economy as a whole will benefit — that lower corporate taxes would lead to company expansions, more jobs and higher incomes. But it hasn’t worked out that way. Instead, economic growth has been mediocre since the 1970s. And incomes have grown even more slowly than the economy for every group except the wealthy.”
- Moody’s Analytics: Mark Zandi, Chief Economist, The Hill (3/31/21)
“Raising taxes on corporations and the well-to-do next year is not going to dent the economy’s growth rate in any meaningful way,” said Mark Zandi, chief economist at Moody’s Analytics. … “It’s not going to be discernible because of all the other sources of growth in the economy over the next 12 to 24 months, so I’m not at all worried about it.”
Biden’s 28% Corporate Tax Rate Works
- Ex-Trump adviser Gary Cohn would back Biden’s proposed 28% corporate tax rate, Yahoo Finance (10/27/20) Cohn, who led Trump’s National Economic Council, was a leading architect of the Trump-GOP tax cuts and is a former COO of Goldman Sachs said: “How do you compete against every other nation in the world? Because international corporations can decide where they’re domiciled … To me, 28% is probably a good number to land on, to end up being attractive to corporations to be in the United States.”