Tell Congress – Raise, don’t cut, corporate taxes during the lame-duck session!

Corporations have hidden obscene price increases behind the inflation, affecting products from food to gas and raking in record profits. And unlike small businesses who could be prosecuted for price gouging during times of crisis, limited competition means there are no real market forces to stop the huge ones. But those profits are not enough for America’s oligarchs…

They are also demanding that Congress give them a new round of tax breaks before year’s end that could cost $100 billion over one year and up to $600 billion over 10 years―their true goal.

Action #1: Call action – Stop rewarding corporate price-gougers

Minimal call script to your representative and senators: I’m calling from [zip code] because I want Rep. [___] to deal with corporate price-gougers – raise, not cut, corporate taxes from 21% to at least 28%; 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.

Action #2: Email Action – Stop rewarding corporate price-gougers

Minimal email script to your representative and senators: Corporations are paying record low income tax rates while they price-gouge us, the consumers, with inflated prices. 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.

We know that more profits for these corporations means more dark-money bribes for legislators to support them.

Instead of encouraging this corrupt closed circle, 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.

Thank you,

Deeper Dive

Read Americans For Tax Fairness’ full report here.

Synopsis: Corporations are enjoying record profits from inflated prices while paying historically low tax rates. In 2021, corporations recorded annual profits of $2.8 trillion, up 25% from the year before. And, in 2022, they’re enjoying the highest profit margin in over 70 years.

The Trump-GOP tax scam that passed in 2017 gave corporations a 40% federal income tax cut, contributing to their explosive profits now. The scam added nearly $2 trillion to the federal deficit over 10 years.

Now, even as major, profitable corporations are price gouging the American people, they are demanding that Congress give them a new round of tax breaks before year’s end that could cost up to $600 billion over ten years.

Here are the three major tax loopholes big corporations are trying to expand:

• Changing the Research & Experimentation tax deduction to allow corporations to write off research expenses all at once instead of more realistically over time. Cost = $155 billion over 10 years
• Expanding the Net Interest Deduction tax break to allow corporations to deduct a bigger share of their interest costs from borrowing money by changing how the deduction is calculated. Cost = $200 billion over 10 years
• Extending 100% Bonus Depreciation, which would allow corporations to write off immediately the full cost of assets that hold their value a long time. Cost = $250 billion over 10 years

Instead of doubling down on the failed Trump-GOP tax scam, which ignored the needs of low and moderate-income Americans, Congress should raise the corporate income tax rate from 21% to at least 28% (still far lower than the 35% corporate tax rate from just 5 years ago). This would raise nearly $900 billion over 10 years, coming mostly out of the pockets of wealthy shareholders.

Congress should close offshore corporate tax loopholes, which encourage large corporations to dodge taxes by shifting operations and jobs offshore and their profits to tax havens. This form of legal tax dodging costs the federal government an estimated $60 billion in lost tax revenue every year.[7] By closing these loopholes, as President Biden and leading Senate Democrats have proposed, we could raise as much as $1 trillion in corporate tax revenue over 10 years.

Congress should strengthen the corporate minimum tax, so it applies to far more than 100 or so profitable corporations making over $1 billion a year. This would raise approximately $90 billion over 10 years.

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.

[1] “Congress should raise, not cut, corporate taxes during the lame-duck session,” Americans for Tax Fairness, Nov. 17, 2022
[2] “Statement of Americans for Tax Fairness on Midterm Election Results,” Americans for Tax Fairness, Nov. 9, 2022