Expert Calls for Corporate Tax Hike Amid Inflation Concerns
Amidst the backdrop of Tax Day reflections, a video message from Lindsay Owens, executive director of Groundwork Collaborative, has sparked a conversation about the intersection of taxes and inflation. Owens highlighted the connection between the two, suggesting that the high prices troubling Americans are partly due to corporate behaviors incentivized by tax legislation.
Owens pointed to the 2017 Tax Cuts and Jobs Act (TCJA), signed by former President Donald Trump, which delivered substantial tax breaks to corporations and wealthy individuals. With parts of the TCJA set to expire at the end of next year, there is a growing chorus for reforms to address what Owens describes as “corporate greed.”
According to Owens, the TCJA not only allowed corporations to reward shareholders but also enabled them to raise prices for consumers. She argued that this was facilitated by the ability of corporations to retain more profits due to lower tax obligations. Groundwork Collaborative’s analysis supports this claim, showing that corporate profits were responsible for over half of the inflation experienced in the U.S. from April to September of the previous year.
Owens advocates for an increase in corporate tax rates as a means to discourage what she terms “corporate profiteering.” This stance comes in stark contrast to recent Republican moves, with GOP members of the House Ways and Means Committee signaling their intent to push for further tax cuts for businesses and the wealthy.
Former U.S. Labor Secretary Robert Reich weighed in on the debate, emphasizing the need for a reversal of the TCJA’s “regressive tilt” should Democrats gain control in upcoming elections. Reich underscored the importance of ending tax cuts for those making over $400,000 on schedule in 2025, criticizing the law’s provisions that benefit high-income households without delivering broader economic benefits.
The discourse around taxation and economic equity continues as political figures and experts weigh in on potential policy directions. With inflation remaining a pressing concern for many Americans, the discussion around corporate taxation and its impact on prices is likely to remain at the forefront of economic policy debates.
