Under Biden infrastructure proposal, corporate tax rate would marginally increase
RAPID CITY, S.D. (KEVN) - President Joe Biden’s multi-trillion dollar infrastructure plan would have a direct impact on how businesses are taxed.
The American Jobs Plan would raise the current corporate tax rate from 20% to 28%. Republicans are opposed to this hike, and say that the low corporate rate is good for businesses. However, the 28% rate is still lower than the 35% rate under the Obama administration.
Tom Johnson, President of Elevate Rapid City, said that this marginal increase is a lot lower than some business owners feared.
”What businesses seem to want more than anything, is that they don’t want excessive taxes, and this 28% is not that,” Johnson said. “When we talk to businesses, they want to just make sure that they can plan accordingly so that you’re not getting policies that affect you that you can’t plan for.”
Johnson said that while a low tax rate attracts a stronger workforce, investments in infrastructure can also boost the economy.
He said that growth in the economy is entirely dependent on how the federal government decides to use this extra money.
”Do you put those revenues into infrastructure? If you do that, the thinking is that infrastructure benefits lots of businesses,” Johnson said. “So, if you invest in workforce and infrastructure, then those investments should make more businesses more productive overall.”
South Dakota’s congressional delegation has spoken out against the infrastructure plan.
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