If Sens. Kyrsten Sinema and Mark Kelly votes for the Democrats’ reconciliation bill, they will stick Arizona companies with a higher tax rate than communist China.
The Democrats’ reconciliation bill would leave Arizona with a combined federal-state corporate tax rate of 30.1% vs. communist China’s 25%.
The Democrat bill will also put Arizona companies at a competitive disadvantage vs. Europe: The European average corporate tax rate is 19%.
“As the country tries to recover from a once-in-a-century pandemic, Sinema and Kelly would have to explain why they want to stick Arizonans with higher taxes than China and Europe,” said Grover Norquist, president of Americans for Tax Reform.
The Democrats’ $3.5 trillion bill will impose the largest tax increase since 1968. It will raise individual income taxes, small business taxes, corporate taxes, and capital gains taxes. If passed, the combined federal-state capital gains tax rate for Arizonans would be 35.17% vs. China’s 20%.
The burden of the corporate tax rate hike will be borne by Arizona workers in the form of lower wages, and by households in the form of higher prices. Higher corporate tax rates will also raise utility bills.
The non-partisan Joint Committee on Taxation recently affirmed in congressional testimony that the corporate tax rate hike will fall on “labor, laborers.“
Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:
“Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth.”