b"POLITICSRaising Corporate TaxesNOT the Remedy for Pandemic RecoveryBy Andrajew 'Eddie' YeshiwasN early a year-and-a-half after the outbreak of the COVID-19 pandemic, Colorado businesses and workers are making significant strides to erase the lossescausedbytheworstrecessioninnearlya century. Or at least, many are. Our states recoveryNo matter how well intentioned, a corporate tax rate will has and continues to be uneven, with the greatest and most lasting impacts hitting those at the bottomharm Minority owned businesses in Colorado. This is the of our economy. The Colorado Sun reported in March that a fulllast thing Minority and Immigrant Communities need as we quarter of jobs in our states lowest-paying indus-trieswerelostduringthepandemic.Employmentstrive to get our economy back on the rails and those at inthehighest-payingindustrieswasdownjust 0.4%inDecember.Womenslaborforceparticipa- the bottom back on a path of upward mobility.tion remains over four points, or more than 100,000 workers,belowpre-pandemiclevels.Spendingin restaurants and hotels in June was down nearly 7% from January 2020, and revenues for small leisure andhospitalitiesbusinesseswasdownmorethan 50%.ItsagainstthisbackdropthatPresidentBiden and some lawmakers in Washington have proposeddrive productivity, which boosts profitability. WhatsPresident Biden has been a champion of Minority, raising the U.S. corporate tax rate. Increasing rates,good for the goose is good for the ganderor, moreWomen and Immigrant ownedbusinesses. Just as they say, will force major corporations to pay theirplainly,whatsgoodforworkersisgoodforbusi- those businesses bore more than their fair share of fairshareoftaxes.Higherrates,theysay,wontnesses, and vice versa.the economic brunt of the Pandemic so too will they affect small businesses or families earning less thanThe higher a corporate tax rate the less able busi- be unequally harmed by a raise even small in the $400,000 per year. But as most workers and busi- nesses are to invest in jobs, wages and growth. InCorporate tax rate. No matter how well intentioned, ness owners know, those claims dont pass a smellfact, a 2008 study by the Organization for Economica corporate tax rate will harm Minority owned busi-test. CooperationandDevelopment(OECD)concludednesses in Colorado. This is the last thing Minority Businessownerswanttoinvestintheirpeople.that high corporate taxes are the most harmful toand Immigrant Communities need as we strive to get Payingcompetitivewageshelpsrecruitandretaingrowth.Thatsbecausewhencompanieshavetoour economy back on the rails and those at the bot-talented workers. Job creation and capital spendinghold capital to cover their tax obligations, they can- tom back on a path of upward mobility.not invest in the resources thatThismonththeU.S.Senate move our economy forward. passeda$1.2trillionbiparti-Just like Colorados pandem- saninfrastructureagreement ic recovery, corporate taxes arethat demonstrates Washington not distributed fairly. Researchcangetbigdealsdone.What shows that 70% or more of cor- wasmoststrikingwasnt poratetaxesarepassedontowhatwasinthelegislationworkersthroughlowerwages,although that, too, was impor-fewer jobs and reduced produc- tant for Colorado workers and tivity. Effectively, raising ratesbusinessesbut what wasnt in onbusinessesmeansraisingitno corporate tax increase. ratesonemployeesandtheirColoradoSenatorsMichael families,and,asPresidentBennet and John Hickenlooper Obama wisely stated, you dontwereinstrumentalingetting raise taxes during a recession.the infrastructure bill through Orasthecountryworkstothe first chamber of Congress. climboutfromone,forthatTheirleadershipreflectstheir matter.commitmenttocommonsense A corporate tax rate hike haspolicymaking that looks out for often been framed as a way tothegoodofeachpartofour stopcompaniesfromdodgingeconomy. It shows their under-Andrajew Yeshiwas standingthatifourbusiness theirtaxbills,whichmakescommunity is not positioned to for a compelling talking point.invest, grow and succeed, our More than eight in 10 Americas believe it is unfaircommunitieswontsucceedeither.BothSenators that some major corporations pay little or no taxeshavebeenfriendsandalliesoftheEthiopian-despitemassiveprofits.ButraisingrateswithoutAmerican and African-American Communitieswe eliminating the loopholes that allow these bad appleshope that in the spirit of friendship they will reject to write off what they owe is like damming the wrongtaxincreasesthatdisproportionatelyharmbusi-river.Itwontstopthosewithdeeppocketsfromnesses owned by our Communities. gaming system; it will saddle honest companies with an even greater tax burden. IencourageSenatorBennetandSenator Its also misleading to suggest that a higher cor- Hickenlooper,andeverymemberofColorados porate tax rate will only affect businesses earningCongressionaldelegation,tocontinuetoput above a certain threshold. In reality, theres no wayColorados businesses and workers First.Increasing to isolate the impact. A recent report by the bipar- corporate tax rates wont make our tax code fairer or tisanCongressionalJointCommitteeonTaxationstop the less than 0.5% of major corporations that found 98% of Americans earning less than $500,000exploit holes in the system. It will hurt workers and wouldbeaffectedbyahighercorporatetaxrate.smallandfamily-ownedbusinessesitwillharm Workers,retireesandsmallbusinesseswouldbeour friends and our neighborsat a time when many disproportionately affected, the study notes. arestillreeling.Thatshardlythepost-pandemic remedy Colorado needs right now.2 SEPTEMBER 2021 BOCNEWS.com"