Weekly Pulse: Majority Says Higher Business Taxes Would Reduce Growth and Hurt Economy

70 percent expect higher taxes on businesses to result in higher consumer prices, says Job Creators Network/ScottRasmussen.com Survey

November 15, 2018

Washington, DC (November 15, 2018) – A majority of Americans say higher taxes on businesses would be bad for the economy and lead to lower investment in future economic growth, according to the Job Creators Network/ScottRasmussen.com Weekly Pulse, released today.

“Americans understand that higher taxes on businesses will hurt the economy and affect employment,” said Job Creators Network Foundation President Elaine Parker. “That’s an important finding, and it suggests that selling such a plan to the American people won’t be easy for the members of the incoming House majority who campaigned on that promise.”

Seventy percent of Americans think businesses would be more likely to raise consumer prices rather than accept lower profits if taxes were to be increased, the Pulse found. Seven times as many people think higher business taxes would result in layoffs (64 percent) versus hiring new employees (9 percent).

Among the various possible effects – higher prices, layoffs, offshoring, reduced pay for workers, lower executive compensation – a strong plurality of Americans say businesses would be most likely to pass on the cost of higher taxes to consumers.

“Americans are divided on exactly how higher businesses taxes would affect the economy, but a very high majority believes that the effect would be negative,” said pollster Scott Rasmussen.

The findings have implications for the incoming Congress, many of whose new members have promised to raise taxes on businesses.

“Based on these results, there is significant resistance to that idea,” said Parker.