Corporate profits are up. Wages remain low. And, as always, the richest are angling for ever-lower tax rates.
Only 0.1 percent of full-time workers earning the minimum wage can afford to rent a one-bedroom apartment in any state in the U.S., but judging by their tax agenda, the Republican Party and President Donald Trump appear to feel it is massive corporations and billionaires—not American workers—who need an income boost.
“Real tax reform would close the deferral loophole and ensure that large multinational corporations cannot continue to dodge the taxes they owe.”
—Economic Policy Institute
Attempting to justify his push to give massive tax breaks to the wealthiest Americans and the largest corporations, Trump has repeatedly argued that businesses are being strangled by high tax rates. The GOP’s new televised ad campaign blares the same message: American corporations pay the “highest tax rates in the world,” it states.
A new analysis by the Economic Policy Institute (EPI) finds, however, that this “talking point” is “misleading because what corporations actually pay (their effective rate) is far lower” than the statutory rate of 35 percent.
By taking advantage of various loopholes and tax avoidance strategies, EPI’s Hunter Blair notes, American corporations are able to pay far less than what they owe, thus drastically reducing government revenue and bolstering their bottom lines.
Their efforts have been very effective: According to the Center on Budget and Policy Priorities, corporate profits are “near all-time highs.” Wages for most workers, meanwhile, have been stagnant for decades.
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