DES MOINES, Iowa – While The Biden Administration is gathering support for the President’s nearly $2 trillion infrastructure proposal, the Iowa Association of Business and Industry is against the plans corporate tax hike.
“The infrastructure bill is really two policies and one. It is an infrastructure bill, but it’s also a tax bill to raise revenue,” said JD Davis, the Vice President of Public Policy for the Iowa Association of Business and Industry.
According to a study, the proposed tax hike under the proposal would lead to 1 million job losses in the first two years after it takes effect. The tax boost could hurt both Iowan employers and employees in the state.
“We’re coming out of pandemic. And we had very high unemployment during that phase. And we’re seeing that many, many people are still out of the workforce, and we need to bring them back in,” said Davis.
Although the President’s infrastructure proposal promises to fix roads, bridges and add jobs, the association believes the tax increase could negatively impact the country.
“It makes us uncompetitive internationally. So when we’re looking for markets for those things that we make. So, that tax rate puts us out of the running.”
Currently, Representative Cindy Axne supports the President’s proposal. She wrote this statement to WHO 13 News.
“I fully support enacting an infrastructure plan that creates jobs, revitalizes our communities, and keeps Iowa competitive in the global market. I will be working with my colleagues in Congress and President Biden to ensure that package includes investments to repair our roads and bridges, expand access to affordable high-speed internet, and support Iowa’s workforce and rural communities.“