Still more evidence the tax hikes included in the Build Back Better Act would make inflation worse. As noted by Bruce Thompson in the Washington Examiner, a “Working Paper” from the National Bureau of Economic Research shows how tax hikes on businesses result in higher prices for consumers.
The study found that increases in corporate tax rates are passed on to consumers, in part, in the form of higher prices. Here’s the key conclusion from the write-up:
This paper provides evidence that corporate taxes impact retail product prices, and that a significant portion of corporate tax incidence falls on consumers…. …