Larry Kudlow, the former Chief of the National Economic Council under President Trump, summed it up nicely in his television show on Tuesday: It’s so easy for a pollster to ask a voter something like “Well, why not tax the rich or rich corporations or rich investors or rich inheritances?” A lot of voters will shrug their shoulders and say, “Sure, go get them.” But when it turns out that there's an economic cost in the form of lower jobs, then opinions change.
Raising taxes is never a popular measure. On one hand, taxes are necessary to fund government services and reduce the national debt. Many argue that higher taxes result in a shrinking economy and fewer jobs. With job sensitivity hovering at 54% last month, the prospect of limited job opportunities is worrisome.
There are merits to both sides, but a grim employment scenario drastically affects how Americans feel about a tax increase.
Larry Kudlow collaborated with the latest TIPP Poll to gauge Americans' opinion of the proposed tax hikes.
First, the survey asked if respondents support increasing corporate tax, capital gains tax, and estate tax.
A follow-up question asked if they would support the same tax increase if it resulted in the loss of jobs. The survey found that numbers supporting the hike dropped significantly across the board.
Corporate tax accounted for about 7% of federal revenue in 2019. The TIPP Poll asked over 1,400 Americans whether they supported or opposed a corporate tax increase. A fair share of respondents answered in the affirmative. The data reads: