Corporations are enjoying record profits from inflated prices. And they are paying record low income tax rates while they price-gouge consumers. They don’t need even more tax breaks that enrich wealthy shareholders while starving public services of critically needed funds that help working families afford healthcare, housing, childcare, utilities and more.
As Congress considers an end-of-year spending bill, I urge you to raise, not cut, corporate taxes.
In 2017, the Trump-GOP tax scam gave corporations a 40% federal income tax cut, which is helping to fuel a nearly $2 trillion addition to the federal deficit over 10 years. Now, some in Congress are doubling down on this scam, trying to give major corporations up to $600 billion in new tax cuts by making the Trump-GOP tax law even more generous to corporations. I urge you to reject efforts to expand these three major tax loopholes: the Research and Experimentation tax deduction, Net Interest tax break, and 100 percent Bonus Depreciation.
Instead, Congress should raise the corporate tax rate from 21% to at least 28% (the corporate tax rate was 35% just 5 years ago); close offshore corporate tax loopholes, which encourage large corporations to shift operations and jobs offshore and profits to tax havens; and strengthen the corporate minimum tax so it applies to far more than 100 corporations making over $1 billion a year.
The nearly $2 trillion these progressive tax reforms would raise could be used to improve the lives of working families: making healthcare, childcare and housing more affordable; expanding the Child Tax Credit to lift millions of children out of poverty; shoring up Medicare and Social Security; and more.
I urge you to raise, not cut, corporate taxes during the lame-duck session.
▶ First sent on November 23, 2022 by Jess Craven