John,

Corporate lobbyists have been pressuring Congress to pass multiple corporate tax handouts worth hundreds of billions of dollars. But they need to act fast so it’s ready for the 2024 tax season.

A new report from Axios highlights the need for Congress to hear from us NOW to put children before billion-dollar corporations:

Take action now and demand that Congress include the expanded Child Tax Credit in any upcoming tax package, and ensure the full tax credit reaches the lowest-income households. Click here to write to your senators and representative today.

After you take action, check out David’s email below, which provides details on the two most egregious corporate tax handouts that corporate lobbyists are demanding.

Thank you for taking action today, demanding a tax system and economy that puts children, families, and working people first.

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

-- David's email --

John,

There are serious negotiations going on in Congress right now to pass a tax package as soon as Congress returns in January that could include the expanded Child Tax Credit:

In 2021, when Congress expanded the Child Tax Credit to reach the lowest-income households through monthly $250 and $300 payments per child, it reduced childhood poverty by 46%, lifting 716,000 Black children, 1.2 million Hispanic children, and 820,000 white children out of poverty.[1]

At a time when conservatives in Congress are looking to hand more tax breaks to billion-dollar corporations while demanding cuts to services for working families, they need to hear from us today.

The tax package is being written right now, with a vote possible immediately after Congress returns next month. Write to your members of Congress and tell them to put children before corporate profits and prioritize the expanded Child Tax Credit in any tax package.

While we’re demanding a tax package that works for working families, Republicans are demanding huge, highly partisan handouts to large, profitable corporations. Here are the two most egregious corporate tax handouts that corporate lobbyists are fighting for:

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 = $325 billion over 10 years.[2]

Americans for Tax Fairness research shows that a dozen of the biggest corporate beneficiaries of this tax giveaway have already reaped nearly $43 billion in tax savings from this loophole alone, and paid effective tax rates far below the statutory 21% corporate tax rate.

Corporations claim that without this tax break, they’d be forced to roll back business investments. But ATF research shows that while this loophole was in effect from 2018 to 2022, corporations spent their tax windfall on enriching executives and wealthy shareholders. Here are just a few:

• Google (Alphabet): Paid their top 5 executives $1.1 billion in compensation packages and spent $168 billion on stock buybacks

• Amazon: Paid their top 5 executives $713 million and spent $6 billion on stock buybacks

• Bank of America: Paid their top 5 executives $504 million, spent $85 billion on stock buybacks, and $37 billion on dividend payments to shareholders

• General Motors: Paid their top 5 executives $318 million, spent $2.7 billion on stock buybacks, and $5.8 billion on dividend payments to shareholders

• Facebook (Meta): Paid their top 5 executives $672 million and spent $96 billion on stock buybacks

• Pepsico: Paid their top 5 executives $296 million, spent $8.6 billion on stock buybacks, and spent $28 billion on dividend payments

The other tax break is Expanding the Net Interest Deduction to allow corporations to deduct a bigger share of their interest costs by changing how the deduction is calculated. Cost = $200 billion over 10 years.

This deduction gives wealthy private equity firms taxpayer money to bankrupt our communities. Examples include Toys “R” Us, Payless ShoeSource, J.Crew, and NineWest. Most recently, private equity firm Cornell Capital drove the maker of Pyrex and Instant Pot kitchenware into bankruptcy just two years after forcing the company to take out big loans to fund a $245 million debt-financed payday to Cornell.[3]

There is little bipartisan support for either provision but Republicans are hoping they can ram these two tax cuts through. We’re demanding Congress put kids and families ahead of greedy corporate interests.

Write to your senators and representative now and tell Congress to prioritize children and families in any tax package by including the expanded Child Tax Credit and ensuring the full credit reaches the lowest-income households.

Together, we’re fighting for a tax system that puts working people first, not billion-dollar corporations.

David Kass
Executive Director
Americans for Tax Fairness Action Fund

[1] Expansions to Child Tax Credit Contributed to 46% Decline in Child Poverty Since 2020
[2] True Cost of Full Expensing Tax Break Masked by Temporary Extension
[3] Familiar tale of private equity and debt lands Instant Pot, Pyrex maker in bankruptcy