https://www.wsj.com/articles/biden-reconciliation-entitlements-global-competitiveness-corporate-tax-hike-income-death-11630619861?mod=opinion_featst_pos1
Joe Biden this week completed the U.S. pullout from Afghanistan, in a humiliating military surrender to the Taliban. The president is more interested in working on a second capitulation—a wholesale economic surrender to China and other rivals.
Members of the House Ways and Means Committee were notified that markup will begin as early as next Thursday on Democratic plans for the largest tax increase in at least 50 years. House leaders have yet to provide any text for the committee work, since they continue to negotiate the details. But the White House and Democratic lawmakers have made clear the broad contours, which are best read as an exercise in U.S. self-sabotage—a gift to foreign companies and foreign workers everywhere.
Washington excels at spin, but few lines may prove more economically destructive than the continued Democratic claim that the 2017 tax law was about cuts for the “rich.” Even critics at the time acknowledged the law’s real highlight—its central focus—was its overdue and comprehensive reform of the corporate tax system. As this page’s editorial columns noted, the cuts on the individual side weren’t nearly “as ambitious,” making only marginal trims to top rates.
The corporate changes were specifically designed to restore America’s global competitiveness, which had eroded over decades. It cut the top corporate rate, which at 35% was the highest in the developed world. It got rid of a backward “world-wide” tax system, in which U.S. companies paid taxes in countries where they earned income and again if they returned money here. This was fundamentally a “pro-America” reform.
And it worked. An estimated $1.6 trillion flowed back into the U.S. from 2018 to 2020, which businesses poured into American factories, American jobs, American wages.