A group of 250 big bosses and representatives of SMEs, including executives of JPMorgan Chase, Pfizer and Revlon, on Tuesday opposed an impending tax hike in New York State which they said could “to compromise” economic recovery. At the same time, in France, – not to mention an increase – the Minister of the Economy Bruno Le Maire proposed on March 22 to devote a share of future income from corporate tax to the repayment of the public debt.
The recent $ 1.9 trillion support plan adopted in Washington already includes funds for local communities, they justify in a letter to Governor Andrew Cuomo and Democratic leaders in the Senate and House of Representatives of the United States. State.
Once the recovery is well underway, “there may be a need to raise more income to fill the gaps in the education, health or social protection systems,” they write.
But for now, significant corporate and personal tax hikes, as proposed by New York officials, “will make it much more difficult to restart the economic engine”, they say.
While the offices are only occupied “about 10%”, a tax increase could in particular dissuade New Yorkers who moved to countries with lower tax rates during the pandemic from returning, such as the state of Florida, argued economic officials in the letter initiated by the association Partnership for New York City.
Companies may have to “relocate their activities to where talent wants to live and work,” they add.
The publication of this letter comes as questions arise about how the US government can fund ambitious infrastructure projects.
During the presidential campaign, Joe Biden proposed to increase the corporate tax rate from 21% to 28% and to raise the taxes of individuals earning more than $ 400,000 a year.
The Democratic president initially aimed to present his investment program including infrastructure projects in February. But that goal was quickly ruled out, as the adoption of the $ 1.9 trillion bailout met with opposition from Republicans for several weeks.
According to the American press, the economic advisers of the White House could submit this week to Joe Biden a set of measures of 3 trillion dollars.
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