John,

As House Republicans press ahead with their threat to default on our debt, the corporations that raked in billions from the budget-busting Trump-GOP tax scam have a message for Congress: cut spending on education, healthcare and public safety “to reduce future deficits” and then give corporations $600 billion in additional tax breaks.[1]

At a time of record profits and historically low tax rates, corporations don’t need even more tax handouts.

Check out David’s email below for more details, then write to your senators and representative and demand they reject even more tax cuts for corporations.

Instead of doubling down on tax cuts for corporations and their rich shareholders, Congress should raise taxes on large profitable corporations and use that revenue to invest in working people and our future.

Thank you,

Sarah Christopherson
Legislative and Policy Director
Americans for Tax Fairness Action Fund

[1] “U.S. Chamber Calls for Swift Agreement on Debt Limit to Include Permitting Reform and Spending Limits,” May 9, 2023
“Congress should raise, not cut, corporate taxes during the lame-duck session,” Americans for Tax Fairness, Nov. 17, 2022

-- David's email --

John,

The last two years, corporations have enjoyed 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. They began 2022 with the highest profit margin in over 70 years.[1]

The Trump-GOP tax scam that passed in 2017 gave corporations a 40% cut in the federal income-tax-rate, contributing to their explosive profits now. The scam added nearly $2 trillion to the federal deficit over 10 years―which congressional Republicans are now using to demand cuts to critical services for working families.

But, even as major, profitable corporations are price gouging the American people, they are demanding that Congress give them a new round of tax breaks.

At a time when Congress is fighting over a debt-ceiling impasse that jeopardizes critical services for working families―and threatens to cause an economic recession―we should not be cutting taxes for corporations, we should be increasing them.

Write to your senators and representative and demand they reject even more tax cuts for wealthy corporations.

Here are 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

• 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

• 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

Instead of doubling down on the failed Trump-GOP tax scam, Congress should raise the corporate income tax rate from 21% to at least 28% (still far lower than the 35% corporate tax rate in place just 6 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. 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.

Click here to demand your senators and representative reject more tax cuts for wealthy corporations.

Together, we’re fighting back against corporate giveaways that add even more to the deficit. Wealthy corporations should be paying more, not less, in taxes.

Thank you,

David Kass
Executive Director
Americans for Tax Fairness Action Fund

[1] “Congress should raise, not cut, corporate taxes during the lame-duck session,” Americans for Tax Fairness, Nov. 17, 2022