Biden vs Trump – Corporate Taxes
Last week, during competing town halls, both candidates were asked about corporate taxes.
Candidate Biden’s response was,
“If you raise the corporate tax back to 28%—which is a fair tax—you’d raise $1.3 trillion by that one act,” Biden told one voter. “You can raise a lot of money to be able to invest in things that make your life easier.”
When asked by an undecided voter,
“What do you say to Americans to tell them why you want the corporate tax lower and why that helps them?”
President Trump’s answer was,
| “Our corporate taxes were the highest in the world… now they’re among the lowest,” Trump said. “What that means is jobs.” |
The Democrats talking point is lower corporate tax rates only help “big business”. But, who really pays those taxes? According to Milton Friedman,
| “The elementary fact is that ‘business’ does not and cannot pay taxes,” Nobel Prize–winning free-market economist Milton Friedman once explained. “Only people can pay taxes. Corporate officials may sign the check, but the money that they forward to Internal Revenue comes from the corporation’s employees, customers or stockholders. |
In 2017, the Tax Foundation wrote a review on this topic. The findings were,
“Studies appear to show that labor bears between 50 percent and 100 percent of the burden of the corporate income tax, with 70 percent or higher the most likely outcome,”
It comes down to who Biden and Trump are talking about raising taxes on, which is you.