How Would Tax Increases Impact U.S. Economy And Workers?
The National Association of Manufacturers (NAM) and economists from Rice University have tried to answer that question in a new study.
They determined that raising corporate tax rate to 28 percent, increasing the top marginal personal income tax rate, repealing the 20 percent pass-through deduction, and eliminating certain expensing provisions would have large negative effects for the economy.
- One million jobs lost within the first two years of implementation;
- A decline in gross domestic product (GDP) totaling $117 billion by 2023;
- An $80 billion decline in ordinary capital, or investments in equipment and structures by 2023;
- An average annual reduction in employment of 600,000 jobs each year over 10 years;
- A 0.6 percent decline in real wages over the long-term; and
- A 0.6 percent decline in total labor compensation, including wages and benefits, over the near- and long-term.