Get All Access for $5/mo

Will Biden's Proposed Tax Hikes Prevent Companies From Hiring? A recent survey reveals that most CEOs don't agree with the president's plan to increase the corporate tax rate.

By Justin Chan

As President Joe Biden prepares to push forward with an overhaul of the country's corporate tax code, a recent survey from Business Roundtable reveals that CEOs are not necessarily on board.

Yesterday, the nonprofit lobbying group — which represents nearly 200 CEOs from American companies, including Apple, 3M and Lowe's — released the study's results. Perhaps unsurprisingly, a significant number of the 178 CEOs questioned between March 8-19 believe that increases in U.S. domestic and international tax rates would, per the organization's press release, "have a negative effect on business expansion, hiring and wage growth, investments in research and development (R&D) and innovation, and U.S. competitiveness in the global economy."

Related: 6 Tips for Hiring the Right People

Approximately 98% of respondents said that an increase in the corporate tax rate from 21% to 28% would have a "moderately" to "very" significant adverse effect on their businesses' competitiveness. About 71% of those same respondents said that a hike would affect the number of people they could hire, and two-thirds believed that it would slow wage growth. A majority of the respondents (75%) additionally said that the increase would negatively impact investments in R&D.

"The proposed tax increases on job creators would slow America's recovery and hurt workers," the organization's president Joshua Bolten said in a statement. "This survey tells us that increasing taxes on America's largest employers would lead to a reduced ability to hire, slower wage growth for workers and reduced investments in research and development — all key components needed for a robust economic recovery. When U.S. companies can compete around the world, they can invest in America and help generate more jobs, pay higher wages and support all of their stakeholders."

Biden is hoping to increase the corporate tax rate to help fund his $2 trillion infrastructure and jobs plan, although he faces fierce opposition from Republican lawmakers. An increase would repeal changes to the corporate tax code made under former President Trump's Tax Cuts and Jobs Act in 2017.

Justin Chan

Entrepreneur Staff

News Writer

Justin Chan is a news writer at Entrepreneur.com. Previously, he was a trending news editor at Verizon Media, where he covered entrepreneurship, lifestyle, pop culture, and tech. He was also an assistant web editor at Architectural Record, where he wrote on architecture, travel, and design. Chan has additionally written for Forbes, Reader's Digest, Time Out New YorkHuffPost, Complex, and Mic. He is a 2013 graduate of Columbia Journalism School, where he studied magazine journalism. Follow him on Twitter at @jchan1109.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business Solutions

Let Your Projects Shine with MS Project 2021 Pro for Just $19.97

Improve efficiency and visibility with built-in reporting and tracking.

Social Media

How To Start a Youtube Channel: Step-by-Step Guide

YouTube can be a valuable way to grow your audience. If you're ready to create content, read more about starting a business YouTube Channel.

Data & Recovery

Professionals Can Securely Organize Their Files With This Cloud Storage Solution

Koofr Cloud Storage allows you to keep all of your important files in one secure place.

Side Hustle

She Started a T-Shirt Side Hustle as a Recent Grad Working at 'People' Magazine. It Led to a DM From Levi's and $400 Million.

When Michelle Wahler, co-founder and former CEO of Beyond Yoga, moved to California, she went "full steam ahead" on a new venture.

Science & Technology

Old Data Systems Are Holding Businesses Captive — Here are 7 Reasons to Embrace Modern Data Architectures

Discover why modern data architectures are essential for leveraging AI and big data. From scalability and real-time analytics to improved security and cost efficiency, explore the key benefits driving today's data strategies.