According to new data from Chairman of the Senate Finance Committee Ron Wyden From 2000 to 2016, corporate tax revenue averaged 1.7% of total GDP, or what he calls the “modern average”. Immediately after the GOP’s tax gift to the richest Americans, corporate revenues fell nearly 40% below this modern-day average. In the next decade, corporate tax revenues will be more than 25% below the modern average.
In 2018, the USA ranked last among the countries of the USA after the handicraft of the GOP Organization for Economic Cooperation and Development– 37th out of 37 – in terms of the amount of corporate tax revenue collected as a percentage of GDP. If you compare the 10 largest economies in the world, all nine other countries have corporate tax rates between 25 and 34%, according to Sen. Wyden’s report.
“Corporations have never contributed less to federal revenue than they do now – thanks to Republican tax breaks,” Wyden told the Post.
Rosenthal from the Tax Policy Center agrees. “Historically, companies that have enjoyed the benefits of the US economy have contributed significantly more,” said Rosenthal. “In the last few years these contributions have decreased, which I think is just unfair. Companies and their shareholders can afford to contribute more. “
But the Republicans have decided that the corporate tax rate hike is their “red line,” and they are working to kill Biden’s American employment plan over it. Here is her three step move:
Explain that corporate tax increases are a deal killer
Make a counter offer for infrastructure / jobs that is only a fraction of President Biden’s (in other words, ridiculous)
Put the brunt of the burden on American taxpayers paying for what progressive Democrats will never agree to
In other words, the GOP counter offer is dead upon arrival and they know it.
So here we are: Republicans are more than happy to kill a plan to revolutionize American infrastructure and create millions of jobs to protect companies from paying the cost of improvements that will undoubtedly benefit their bottom line.
That seems fair. If you are a Congressional Republican.