Senator Elizabeth Warren is taking a victory lap after getting one of her policy goals signed into law. But she should be apologizing to the tens of thousands of Americans she just put out of a job.
On Monday, the senator put out a statement celebrating the implementation of a 15% so-called “corporate minimum tax” that took effect on January 1. Warren’s brainchild, the $225 billion tax hike is part of a bevy of tax increases that were snuck into the misleadingly-named “Inflation Reduction Act,” which Biden signed into law in August.
For years, giant corporations have gotten away with paying little to nothing in federal taxes. Not anymore. My 15% corporate minimum tax will ensure companies pay a fairer share in taxes when they report billions in profits to their shareholders. It's now the law.
— Elizabeth Warren (@SenWarren) January 2, 2023
— Brad Polumbo 🇺🇸⚽️🏳️🌈 (@brad_polumbo) January 3, 2023
“For years, giant corporations have gotten away with paying little to nothing in federal taxes,” Warren tweeted. “Not anymore. My 15% corporate minimum tax will ensure companies pay a fairer share in taxes when they report billions in profits to their shareholders. It’s now the law.”
What Warren failed to mention is that corporations don’t really pay taxes. Workers and consumers do. Economists largely agree that a majority of the corporate tax burden is ultimately borne by workers via lower wages. That means a huge portion of this $225 billion tax hike will eventually come out of everyday Americans’ paychecks.
What’s more, the nonpartisan Tax Foundation estimates that the new corporate tax will lower wages, reduce economic growth, and destroy 27,000 jobs. What part of that, Elizabeth Warren, is worth celebrating, exactly?