Corporate leaders are most concerned about tax policy changes under a Trump or Biden administration, according to polling by accounting firm PWC.
The concern stems from a majority of respondents expecting changes in the corporate tax code amid worries that companies will shoulder much of the responsibility to pay for continued relief efforts needed to help a post-pandemic recovery.
Still, the level of concern is uneven between the presidential candidates.
The poll found that 62% of executives view Democratic presidential nominee Joe Biden’s tax plan as the top policy risk for businesses. Corporate leaders who share this concern for President Trump’s second term is 39%.
Other concerns among executives included healthcare, regulations over tech and data, trade relations with China, energy policy, and immigration. Concern over tax policy changes tops all of these issues.
One reason for increased concern about tax changes under a Biden administration is because he has vowed to raise corporate taxes by more than $1.4 trillion over 10 years, according to the Tax Foundation, an independent tax policy think tank.
Biden’s tax plan includes increasing the corporate tax rate from 21% to 28%. It also applies a 21% tax on all foreign earnings of U.S. companies located overseas and penalizes corporations that ship jobs offshore.
On top of this, his plan imposes a 15% minimum tax on book income over $100 million, a provision meant to crack down on evasion.
Trump’s tax plan for his second term is light on details, but his campaign website shows it includes cutting taxes to keep companies from moving jobs offshore and expanding Opportunity Zones, which provides tax advantages for real estate investments in disadvantaged areas.
Despite the lack of details, the president’s tax plan is projected to cost between $1.4 trillion and $2.95 trillion, meaning his plan would reduce revenue going to the federal government, according to the Committee for a Responsible Federal Budget, a nonpartisan think tank.
Despite the fact the Trump’s plan would reduce taxes, a majority of executives think that the federal response to the pandemic, when coupled with rising debt levels, will force whoever wins the White House in November to consider tax increases.
PWC tapped the responses of 537 US corporate leaders, including chief financial officers, chief operating officers, chief human resource officers, and tax and risk leaders, from Sept. 30 to Oct. 6.
