May 26, 2020
Joe Biden’s Tax Plan Would Be A Boon to Beijing
Joe Biden doesn’t just want to raise taxes on middle class families. He also says he will increase the U.S. corporate tax rate from its current 21% rate to 28% -- meaning Biden’s plan would make it more expensive to do business in America than in Canada, South Korea, or China.
China’s corporate tax rate is 25%. At a time when Americans need every financial edge possible, Beijing Biden wants to destroy our country’s competitive advantage and give China the upper hand. Why does Beijing Biden always put America last?
When President Trump pushed Congress to reform the U.S. tax code and make our country more competitive globally, “Chinese officials and executives worr[ied] that the tax proposal Mr. Trump announced … [would] set back China’s global competitiveness and spur companies to invest in America instead of China.”
Centennial Bolt in Denver, CO and Philpott Solutions Group in Brunswick, OH are just two examples of companies who were able to bring manufacturing back to the United States thanks to President Trump’s tax cuts:
- Mark Cordova, President of Centennial Bolt said “I’m mapping out putting in a new plant in the Midwest.” The new product line he plans to launch from that facility “is something right now that’s being manufactured primarily in China. We’re actually going to be at a competitive level to build it in the United States again.”
- President & CEO of Philpott Solutions Group Michael Baach noted, “as a small business, tax reform is creating growth drivers for Philpott in numerous ways… This investment will, in turn, allow Philpott to reshore our manufacturing from China back to the US and allow us to innovate new products. This will drive growth in our business, create new jobs and increase cash and employee stock ownership compensation.”
Prior to the artificial interruption of our economy due to the coronavirus, President Trump’s historic tax cuts helped spur America’s record-breaking economic growth. Repealing these cuts and raising taxes would hurt American workers and smother job creation.
No doubt the Chinese would love to see Joe Biden’s tax plan become a reality, just as they would appreciate Biden surrendering in the fight to hold China accountable for its unfair trade practices. America should not make the mistake of giving China the gift of Joe Biden in the White House.
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