President Joe Biden introduced several plans recently at the State of the Union address targeting big businesses and the wealthiest Americans. He said the moves would reverse many large tax breaks enacted by the Trump administration. The president said he would like to see the corporate tax rate rise to 28 percent, and what's known as the corporate minimum tax rate increased to 21 percent. Biden also took aim at multinational corporations, looking to increase their tax rate to 21 percent.
Tax rates are already higher than needed to pay U.S. bills if we remove the pork, and raising them could make businesses less competitive internationally. Higher taxes deter entrepreneurship and innovation by reducing the financial rewards for taking risks and starting new ventures. This was a distribution of wealth preview of 2025 — taxpayer beware. James Hamilton, UC San Diego NO: Corporate profits are either paid to the shareholders as dividends or are re-invested in the company.