Taxes and Tools

Corporations would face more pressure to succeed and thrive if the U.S. Treasury Department increases corporate income taxes by nearly $2.8 trillion, or 56%. While the additional funding aims to improve the lives of lower earners, hiking corporate taxes could slow the economy and reduce some opportunities by burdening businesses already struggling to pay for innovation and growth initiatives. A major tax hike may impede businesses from investing in technology and equipment to improve efficiency and generate higher revenue, which could boost wages and create new jobs.

High-income taxpayers are again feeling the squeeze as the U.S. Treasury Department seeks to modify rules relating to retirement plans by preventing "excessive accumulations" in tax-favored retirement accounts and slamming backdoor Roth contributions in an effort to raise $23.6 billion between 2025 and 2034. These provisions were originally proposed to help fund the Build Back Better Act, which sought to invest $390 billion in childcare and universal preschool initiatives.