AAF: American Compass Backs Biden Tax Proposal

For more information, please contact AAF Policy Director John Shelton at jshelton@advancingamericanfreedom.com

AAF: American Compass Backs Biden Tax Proposal

TOPLINE: American Compass, a populist and so-called conservative think tank, released a budget blueprint that embraces key provisions of Biden’s budget, such as corporate tax hikes. Compass calls for at least a $3.9T tax increase by allowing the Tax Cuts and Jobs Act (TCJA) to expire.

• TCJA resulted in higher incomes for American families and created instantaneous income

growth. • From 2017 to 2019, household income grew by $6,160 from $72,090 to $78,250. Compass calls for raising the corporate tax rate from 21% to 28%. • The 28% corporate tax rate is taken directly from President Biden’s budget and would increase

taxes on American companies by $1.35 trillion. • Corporations are paying more taxes than ever before.

o In 2017, corporate tax revenue was $297 billion. In 2023, it was $420 billion. This

represents a 41% increase in tax revenue totaling $123 billion more. o Increasing the corporate tax rate would make American companies less competitive on

the world stage. Compass calls for a global 10% tariff. • A 10% tariff would devastate the American economy, cost Americans more than $300B and

kill 505,000 full-time jobs. These tax increases would tilt the scales against American enterprise and drive further offshoring.

BOTTOM LINE: Ultimately, the Compass plan is to simply surrender. It will leave Americans with less money in their pockets and a bigger government to pick it. It surrenders basic economic truths to find false common ground with tax-and-spend liberals. Additional Reading: • Pinpoint Policy Institute - The American Compass Budget Approach: A Multi-Trillion-Dollar

Tax Increase, Dodges Most Critical Fiscal Challenges • Advancing American Freedom – 10% Tariffs Will Lead To Another Economic Disaster