Remarkably, Manchin does not go into detail as to why he is against this tax hike. That makes him a little better than Republicans, who, as Greg Sargent writes, are again cheating their voters. They dig deep into their pockets full of old lies and pull out the old “small business job creators”. A rise in the corporate tax rate and the difficulty for multinational corporations to set up overseas tax shields will hurt these “small business job creators,” Republican Senator Roger Wicker said twice on Sunday “This Week.”
Wicker said the plan was “a massive social spending program coupled with a massive tax hike for small business job creation.” He continued, “I can’t think of a worse tax to impose on the American people than – impose taxes on small business job creation, which that bill would do.” Other than that, none of the companies subject to the corporate tax hike – or the restrictions on off-shoring tax haven accounts – are minor.
Steven Rosenthal, Senior Fellow at the impartial Tax Policy Center, told Sargent, “By definition, raising the corporate tax rate and creating a more robust minimum tax on foreign profits would not do small businesses.” By this he means that the normal, actually small company is unlikely to have a corporate structure that makes it liable for corporate taxes. As for the cap on the amount companies can shield through international profit-sharing? “How could a small business ever generate foreign profits from overseas?” Asked Rosenthal. This is a very good question.
This is the line in the sand for Republicans. Keep corporate tax rates low. “I consider the 2017 tax burden to be one of my most important accomplishments in my entire career.” Wicker didn’t pay off as promised, it didn’t create jobs either. “Instead, companies are spending much of their money on share buybacks rather than investments,” PBS News reported in 2919. “Buybacks hit a record $ 1 trillion in 2018, an increase of nearly 50 percent over the previous year.”
In a shaky column in the New York Times, Paul Krugman speaks about lifting this “flop” of a tax cut that “failed” […] Krugman cites a 2019 analysis by the International Monetary Fund that found that these tax cuts had been completed, which, given the growth in demand, have not increased more than you expected. “
This opposition from Republicans – and Manchin – to large multinational corporations paying bigger taxes is not about jobs. As always, it’s about protecting shareholders. What will now create jobs is an ambitious infrastructure plan that creates work projects like Bidens in every state in the country. Moody’s has estimated that it will directly result in approximately 2.7 million new jobs and that this “would result in significantly more jobs [by] Mid-Decade “and that unemployment is” significantly lower “with the plan.
That’s what this is about. Indeed, real jobs that are rebuilding the country as opposed to the mythical ones that companies won’t create if they don’t have to pay taxes. The Republican line in the sand is bullshit. Manchin amplifying it has its excuse to oppose this bill is worse.