The “Inflation Reduction Act” includes a provision to raise corporate income tax. Fortunately, we’re not going back to 40% like we had under the Obama administration, but this is still a terrible idea.

First off, because higher taxes equals higher revenue collected. At a certain point, when the tax rates climb too high, companies are incentivized to find ways to avoid them, or even leave the country. When we had one of the highest corporate income tax rates in the world, we collected less than we did immediately PRE-COVID when we had a more reasonable 20% rate.

Second, because it isn’t just the wealthiest Americans who pay these taxes. High corporate taxes stifle wage growth and investment, thereby stifling economic growth as a whole. We all pay for it. This isn’t how you get “the rich to pay their fair share.”

Want to collect more tax revenue? How about consumption taxes instead? We don’t really have those in the U.S., but most economists would argue that something like a value-added tax would be a less harmful way to collect money than corporate or individual income tax. Dominic Cingoranelli

Black Forest