It’s been just over three and a half years since President Trump signed the Tax Cuts and Jobs Act of 2017, but one signature part of the bill is now in serious jeopardy. The federal corporate tax rate – which the Trump administration dropped from 35% to 21% – could jump to 28% if the Biden administration gets its way.
The raise, coupled together with an average of state corporate tax rates, would result in a 32.4% combined top corporate tax rate – highest in the industrialized world, according to Tax Foundation. This would include every country in the Organization for Economic Cooperation and Development, the G7, and all major trade partners and competitors, including China.
Now, experts are warning that there could be some unintended consequences of the proposed tax hikes: higher utility bills. “Biden says he is only going to tax the rich and corporations. But when he raises the corporate income tax, he forces increases in your utility bills.