The new analysis calculated the effects of increasing the corporate tax rate to 25%, increasing the top marginal tax rate, repealing the 20% pass-through deduction, eliminating certain expensing provisions and more. The negative consequences would include the following:

  • One million jobs would be lost in the first two years.
  • The average reduction in employment would be equivalent to a loss of 500,000 jobs per year over the next decade.  By 2023, GDP would be down by $107 billion, by $169 billion in 2026 and by $89 billion in 2031.
  • Ordinary capital, or investments in equipment and structures, would be $70 billion less in 2023 and $70 billion and $51 billion less in 2026 and 2031, respectively.


This study follows a previous NAM analysis of provisions that included a 28% corporate rate .  We’re pleased to share a copy of this study with you highlighting its full findings, which is now available here.