Former Home Depot CEO and former Chrysler CEO Bob Nardelli argues that an increase in corporate taxes will end the onshoring experienced under the Trump administration.
Former Home Depot and Chrysler CEO Bob Nardelli warned on Wednesday that corporate taxes will rise if Democrats gain control of the Senate.
He argued in “Mornings with Maria” that a corporate tax hike will put an end to the onshoring experienced under the Trump administration.
Onshoring is the practice of transferring a commercial operation abroad back to the country from which it was originally relocated.
“For the past four years, we have been very excited about the onshoring that was taking place, bringing jobs, good jobs from the US back to corporate America,” said Nardelli. “I think we can now see reshoring, which means leaving China, but going to countries like Vietnam and others in Asia to avoid corporate taxes.”
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Georgia-based Nardelli made the remarks on Wednesday as Democrats were expected to win at least one of the two runoff runs for the Georgia Senate, moving closer and closer to preventing Republicans from maintaining control. from the top of Congress.
Democrat Raphael Warnock is expected to defeat Sen. Kelly Loeffler, R-Ga., According to Fox News’ Decision Desk on Wednesday.
The focus now shifts to the second race between Senator David Perdue and Democrat Jon Ossoff, who are in a close race.
With Warnock’s projected victory, Democrats are a victory away from Senate control, making President Elect Joe Biden more likely to be able to pass his agenda through the House and Senate. If Perdue prevails over Ossoff, Republicans will be able to thwart many of the White House’s plans.
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“I think we will see the two Senate seats move across the hall,” said Nardelli on Wednesday.
“If there was balance in the Senate, I think we would have seen a slower implementation of many of the campaign promises that the president-elect has made,” he continued.
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“If the two seats do swing, I think we’ll see a crazy race to the end … that they [Democrats] we have to do this in two years, just in case, so I think we will see corporate taxes going up. ”
Biden vowed to impose new taxes on corporations and wealthy individuals who earn more than $ 400,000 a year and would almost certainly face a Republican hurdle if Democratic candidates in Georgia’s Senate contests lose.
Biden repeatedly said he would reverse President Trump’s 2017 Tax and Employment Reductions Act and increase the corporate tax rate from 21% to 28%, restore the individual tax rate from 37% to 39.6%, earnings capital tax as ordinary income, limit deductions to those who earn more, expand Earned Income Tax Credit to workers over 65 and impose Social Security payroll tax on wages over $ 400,000.
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Nardelli noted on Wednesday that he recently attended a webinar with more than 100 CEOs who said their “number one” focus if Biden wins the presidential election would be the corporate tax rate.
“Most CEOs said they would spend their time on it,” said Nardelli.
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He then noted that when he was “operating GE power systems in more than 100 countries, we were at an extreme disadvantage because we had to compete with Siemens or ABB in terms of corporate taxes”.
“Corporate America is made up of corporate Americans, so there will be many penalties and many punishments if the corporate tax rate comes back,” emphasized Nardelli. “Companies will be forced to make some bad decisions.”
Evie Fordam and Megan Henney of FOX Business contributed to this report.