The CEOs of America’s largest employers say President Biden’s proposed tax increase on corporations for his $2.25 trillion infrastructure spending plan will hurt their ability to hire more workers and will limit wages, according to a new survey released Monday.
The Business Roundtable survey found that 98% of CEOs said an increase in the corporate tax rate from 21% to 28% percent would have a “moderately” to “very” significant adverse effect on their company’s competitiveness.
Also, 75% percent of CEOs said that a corporate tax hike would negatively affect their company’s investments in R&D and innovation, 71 % said it would negatively affect their ability to hire, and nearly two-thirds said it would result in slower wage growth for U.S. workers.
“The proposed tax increases on job creators would slow America’s recovery and hurt workers,” said Business Roundtable President and CEO Joshua Bolten. “This survey tells us that increasing taxes on America’s largest employers would lead to a reduced ability to hire, slower wage growth for workers and reduced investments in research and development — all key components needed for a robust economic recovery.”
He said although the Business Roundtable believes infrastructure spending “is a foundation for long-term economic growth, we urge policymakers to avoid tax policy changes that would run counter to the goal of increasing economic growth and job creation.”
The group represents companies employing about 20 million workers nationwide, with more than $20 trillion in total value.