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John,
The ink has barely dried on the debt ceiling and budget deal passed this week by the House and Senate―avoiding a catastrophic default in exchange for capping and cutting critical services for working families. But that apparently isn’t enough for House Republicans.
House Ways and Means Chair Jason Smith (R-MO) announced, even before the budget deal was struck, that he intends to give himself an extravagant birthday present at our expense in the form of a budget-busting package of tax cuts.[1] What might be included in such a tax package?
MAGA Republicans have already indicated that they want to make expiring portions of the Trump tax scam permanent, greatly benefiting millionaire and billionaire campaign contributors. And, Republicans and some Democrats have been pushing since last year to expand tax breaks for large, profitable corporations.
On the heels of Republicans holding our economy hostage over their demands for cuts to critical services for working families, they have now made clear that those cuts were never about reducing deficits. They were always about paying for tax cuts for the rich and corporations.
Write to your representative right now and demand they reject a tax package that makes the Trump tax scam permanent and expands tax breaks for large, profitable corporations.
When Republicans passed their tax scam in 2017, they allowed some of the tax cuts to expire so that the bill looked less costly. It still cost nearly $2 trillion, but if they are successful in making the entire Trump tax scam permanent, it would add an additional $3.5 trillion to our national debt over the next decade.[2]
Additionally, Republicans and some Democrats are seeking another $600 billion in tax breaks for corporations, including:[3]
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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
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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
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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
Corporations already received a 40% cut in their federal income tax rate from the Trump tax scam. 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).
Click here to write to your congressperson today and demand they reject a tax package that further enriches the wealthy and corporations. Instead of more tax cuts for the rich and powerful, Congress should be raising new revenues from the wealthy to invest in working families and our future.
Thank you for all that you do to fight for a tax system that puts working people first.
David Kass
Executive Director
Americans for Tax Fairness Action Fund
[1] “Progressives are calling out the Chamber of Commerce for lobbying for House Republicans' tax package while ‘cheerleading’ the GOP's debt ceiling demands.” Politico, May 26, 2023
[2] “Budgetary Outcomes Under Alternative Assumptions About Spending and Revenues,” Congressional Budget Office, May 16, 2023
[3] “Congress should raise, not cut, corporate taxes during the lame-duck session,” Americans for Tax Fairness, Nov. 17, 2022
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