President Biden has pitched his nearly $2.3 trillion spending proposal as a vital investment in the U.S. economy, but the proposed tax hikes that would fund the sweeping measure could kill close to 1 million jobs.

That’s according to a study released Thursday by the National Association of Manufacturers, which found that 1 million jobs will disappear within two years if the president’s proposed tax increases are approved.

MANCHIN REJECTS BIDEN’S CORPORATE TAX HIKE

“This study tells us quantitatively what manufacturers from coast to coast will tell you qualitatively: increasing the tax burden on companies in America means fewer American jobs,” said NAM President and CEO Jay Timmons.

The Treasury Department on Wednesday released details of Biden’s tax plan, which aims to raise $2.5 trillion over 15 years to finance his sweeping spending initiative, dubbed the American Jobs Plan. That includes raising the corporate tax rate to 28% from 21%, imposing a new minimum tax on global profits, and cracking down on companies that try to move profits offshore.

But boosting taxes on corporations could shrink the nation’s GDP by $117 billion in 2023 and $190 billion in 2026, according to the study, conducted by Rice University economists John Diamond and George Zodrow. Those figures assumed a repeal of the 20% deduction for pass-through businesses, increasing the top income tax rate and raising the corporate tax rate to 28%.

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“The conclusion of this study is inescapable—follow through with tax hikes that give other countries a clear advantage and we’ll see far fewer jobs created in America,” Timmons said.

President Biden speaks during an event on the American Jobs Plan in the South Court Auditorium on the White House campus, Wednesday, April 7, 2021, in Washington. (AP Photo/Evan Vucci) ((AP Photo/Evan Vucci))

The tax increases would fund massive investments in the nation’s roads and bridges, as well as transit systems, schools, and hospitals.

But the White House is already facing headwinds over the proposal: Both the U.S. Chamber of Commerce and Business Roundtable, which is comprised of CEOs from some of the nation’s biggest companies, warned that forcing corporations to pay more in federal taxes would ultimately derail the economy’s recovery from the coronavirus pandemic.

Biden indicated on Wednesday that he’s willing to lower the proposed corporate tax increase amid pushback from Republicans and some moderate Democrats, who have raised concerns that the tax increases could derail the economy’s recovery from the pandemic and hurt U.S. competitiveness abroad.

“I’m willing to listen to that,” Biden said when asked at the White House whether he would consider a corporate tax rate lower than 28%. “I’m wide open. But we’ve got to pay for this. There are many other ways we could it. But I’m willing to negotiate that.”

The corporate tax increase would generate about $740 billion in new revenue over the next decade, according to a recent analysis published by the Tax Policy Center.

Source: https://www.foxbusiness.com/economy/biden-corporate-tax-hike-economy-jobs

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The move has raised concern in the global shipping industry that up to 50 tankers could be affected.

“Losing that many tankers overnight has led to a scramble for ships in an already tight market and rates have jumped,” one shipping source said.

Below are details about the sanctions:

WHAT COMPANIES WERE TARGETED?

The administration listed four companies here for allegedly engaging in the transaction: China Concord Petroleum Co, Ltd; Kunlun Shipping Company Ltd; Pegasus 88 Ltd; and COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co, Ltd.

Washington also imposed sanctions on Kunlun Holding Co Ltd, and COSCO Shipping Tanker (Dalian) Co, Ltd, which own or control one or more of the above companies and allegedly had knowledge of their sanctionable behavior.

But the sanctions do not apply to these entities’ “parent companies or any other entities in their corporate groups,” the U.S. State Department said.

WHAT DO THE SANCTIONS DO?

The U.S. State Department said the sanctions freeze all assets of these companies in the United States or in the possession of a U.S. citizen and bans several of their executives from entering the United States.

The U.S. Treasury Department issued guidance here late on Wednesday saying that the sanctions apply “only to these listed entities and any entities in which they own, individually or in the aggregate, a 50% or greater interest.”

WHY IS THE U.S. CRACKING DOWN ON CHINA’S IRAN OIL PURCHASES?

Last year President Donald Trump withdrew Washington from a deal on Iran’s nuclear program that the United States, five other world powers, and Tehran agreed to in 2015. The administration is now seeking to bring Iran’s oil exports to zero to pressure Iran to begin negotiations on a new deal.

The Trump administration says Chinese companies bought oil after the administration had canceled a waiver allowing it to continue limited purchases. China was the top purchaser of Iran’s oil before Trump reimposed sanctions.

WHAT OTHER SANCTIONS HAS THE TRUMP ADMINISTRATION PLACED ON CHINA FOR PURCHASING IRANIAN OIL?

On July 22, Washington sanctioned Chinese state-run energy company Zhuhai Zhenrong Co Ltd, which Secretary of State Mike Pompeo said “knowingly engaged in a significant transaction for the purchase or acquisition of crude oil from Iran” after a sanctions waiver expired on May 2. Those sanctions blocked all property and interests in property of Zhuhai Zhenrong in the United States and barred its chief executive, Youmin Li, from entry into the country.

DO THE SANCTIONS APPLY ONLY TO CRUDE OIL?

No. The State Department said while the purchase of Iranian crude oil sparked the move, “we are similarly concerned with the export of refined oil products from Iran.” Analysts at ClearView Energy Partners said that this week’s sanctions appeared to target vessels that carry liquid petroleum gas, such as propane or butane, in addition to crude and ultra-light oil called condensate, in an expansion of past sanctions.

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