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John,
When we defeated an end-of-year $600 billion package of three corporate tax cuts, we knew the fight wasn’t over. Traditionally, Republicans and some Democrats love to hand out corporate tax cuts. And it didn’t take long for senators to come back with a plan to do just that.
This month, Senators Maggie Hassan (D-NH) and Todd Young (R-IN) introduced a bill that would enact one of these corporate tax cuts by renewing the expired Research and Experimentation (R&E) tax deduction that was part of the Trump-tax cuts in 2017.[1] It allows corporations to write off research expenses all at once instead of over five years, which is more realistic. And it costs $155 billion over 10 years.[2]
Giant defense contractor Lockheed Martin said that they paid $660 million more in taxes in 2022 due to the R&E tax deduction expiring and expected to pay about $575 million more in 2023.[1]
Northrop Grumman, another military contractor, paid about $900 million more in taxes due to the loss of the R&E tax break. In the three years after the Trump tax cuts were passed, this corporation’s tax bill averaged just 10.5%—far below what many working people pay.[2] These corporations rank #1 and #6 among top military contractors.[3]
Let’s be clear: Lockheed Martin and Northrop Grumman paying more of their fair share in taxes is a very good thing.
Click here to write to your U.S. senators to oppose S.866―the Hassan-Young corporate tax cuts―to ensure corporations pay more of their fair share in taxes.
U.S. corporations are enjoying the highest profit margins in more than 70 years, fueled by price gouging.[4] It’s time they start paying their fair share in taxes.
Write to your U.S. senators and tell them to oppose the Hassan-Young corporate tax cuts legislation.
Thank you for taking action today.
Frank Clemente
Executive Director
Americans for Tax Fairness Action Fund
[1] “Lawmakers revive push for more generous R&D tax credit,” CQ, Mar. 17, 2023
[2] “Congress Should Raise, not Cut, Corporate Taxes During the Lame-duck Session,” Americans for Tax Fairness, Nov. 17, 2022
[3] “Top 100 Defense Contractors 2022,” Defense and Security Monitor, Feb. 22, 2023
[4] “US Corporate Profits Soar With Margins at Widest Since 1950,” Bloomberg, Aug. 25, 2022
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