What a corporate tax hike could mean for Americans

Lawmakers are gearing up for a battle over raising taxes as the Biden administration and Democrats move forward with efforts to invest in infrastructure. As part of his $2 trillion American Jobs Plan, President Joe Biden is proposing an increase of the corporate tax rate to 28% from its current 21%. 

But Republicans are already raising alarms. Senate Minority Leader McConnell suggested it's a "Trojan horse" for a massive tax increase. Republican staff on the Senate Finance Committee said Wednesday the proposed tax increases on American businesses would put U.S. companies at a disadvantage globally and translate to fewer jobs, lower wages and lower retirement account values for workers. According to tax experts, the more immediate impact of raising the corporate tax will fall squarely on shareholders— many of whom are wealthy and in some cases even foreign. The Tax Policy Center estimates 80% of the tax burden with corporate rate changes falls on shareholders or business capital while labor is hit with roughly 20% of the burden. In the short run, the left-leaning think tank estimates the entire burden falls on shareholders.