Corporate Tax Rate Spurs Political Fight With More Than $1 Trillion at Stake

Biden wants to raise current 21% rate to 28% while Republicans consider further cuts By Richard Rubin June 17, 2024 3:04 pm ET1/3

President Biden’s plan would reverse half of Republicans’ 2017 rate cut.

WASHINGTON—The 21% U.S. corporate tax rate is the biggest single variable in the sprawling 2025 tax debate, and the two parties are trying to turn that dial in opposite directions with major consequences for companies’ profits and federal revenue.

The rate could climb as high as 28% if Democrats sweep November’s elections and move as low as 15% if Republicans gain full power.

President Biden’s plan for a 28% rate would reverse half of Republicans’ 2017 rate cut, pushing the U.S. corporate rate back near the highest among major economies. A 15% rate—some Republicans are heading that way, but the party hasn’t settled on a plan—would match the lowest level since 1935, boosting profits and rewarding shareholders. Presumptive Republican presidential nominee Donald Trump told corporate executives last week that he wanted a 20% rate.

Each percentage point is worth more than $130 billion over a decade in tax revenue, creating a $1 trillion-plus gap between the poles of the parties’ positions and giving the largest U.S. companies an outsize interest in the election’s outcome.

While in office, Donald Trump helped to lower the corporate tax rate to 21%.

“Why would we want to put U.S. companies in an uncompetitive situation? And if we did that, why would we expect that we would attract investment to the U.S.?”said Jon Moeller, chief executive at consumer-goods maker Procter & Gamble. Moeller leads tax-policy advocacy for the Business Roundtable, the collection of large-company executives who met with Trump last week. The group is planning an eight-figure spending campaign to support maintaining the 21% rate and extending international tax-law changes that lapse after next year.

The fight over the corporate rate makes up part of the wider tax-policy questions that lawmakers will wrestle with next year as large pieces of the 2017 tax law are scheduled to expire. Also on the table: tax rates for individuals, the child tax credit, the state and local tax deduction, tax rates for closely held businesses and the estate-tax exemption.

Corporations won tax cuts during Trump’s first term, and they would benefit if he wins again. In 2017, many companies pushed for lowering the corporate tax rate to 25% from 35%, aiming for the middle of the pack among peer countries. Trump and congressional Republicans got the rate down to 21%.

Unlike other pieces of that same law, the corporate rate cut doesn’t expire.

Republicans were trying to give companies a long-term signal that they could put profits and investment in the U.S. instead of in other countries and get similar after-tax returns.

But tax policy is only as permanent as the political majority that creates it. Democrats tried to raise corporate tax rates after taking power. That plan fell short after Sen. Kyrsten Sinema (I., Ariz.) objected, and the 21% rate

remained, though Democrats created a separate 15% corporate minimum tax.

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>>21049496

2/3

Easy political choice for Democrats

Within the Democratic Party, raising the corporate tax is among the easiest political choices,because it generates so much money for other priorities. It lets Democrats direct attention to companies that enjoyed lower taxes and then raised prices; they have pointed to studies showing that the 2017 law yielded modest boosts in investment and delivered wage gains mostly to higher-income workers.

Democrats also point to U.S. corporate tax revenue as a share of the economy as being low internationally;that is misleading because, unlike elsewhere, the U.S. taxes a significant share of U.S. business income on owners’ individual returns, not through the corporate tax.

“The corporate tax share is already low and corporate profits are at record highs,” said Lael Brainard, the White House national economic adviser. “Any way you look at it, we are not raising enough from the corporate side.” The corporate tax is projected to generate about 8% of U.S. revenue over the next decade, far less than individual income or payroll taxes, according to the Congressional Budget Office.

The corporate tax is one of the most progressive ways of raising revenue, with much of the burden falling on higher-income households, but the reality of who pays it is more nuanced than just saying “companies” or “rich people.”

Economists and government agencies generally agree that shareholders ultimately bear much of the cost, with workers and consumers paying some, too. Shareholders, generally, are wealthier than the population as a whole.

The corporate tax is one of the few ways the U.S. can, indirectly, tax foreign investors in U.S. securities and nonprofits with large tax-free endowments.But the shareholder base also includes pension funds, 401(k) accounts and some middle-income households. Biden and Democrats play down effects on those groups.They also don’t count corporate tax increases as violating the president’s pledge to protect households making under $400,000 from tax hikes.

Republicans see 21% rate as successful

Republicans and executives see the 21% corporate tax rate and accompanyingchanges to international tax rules as successful. They note that no U.S. companies have inverted—taken a foreign address for tax savings—since 2017 and they warn that a higher rate would harm the economy. That is a change from the prior few years, when companies such as Johnson Controls and Medtronic inverted.

Higher rates now would be more onerous than a decade ago, Moeller said. That is because the 2017 law broadened the tax base, removing tax breaks such as one for domestic manufacturing, so a 28% tax now would be 28% on more income….

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>>21049508

3/3

Lawmakers are just beginning to weigh trade-offs within the corporate tax system and the tax code more broadly.

Democrats aren’t necessarily united behind Biden’s 28% rate. Rep. Richard Neal (D., Mass.), likely the chairman of the House Ways and Means Committee if Democrats win a House majority, said he still likes the bill his panel approved in 2021. That had a 26.5% rate, along with international-tax changes that companies sought and higher minimum taxes they opposed. Rates aren’t all that matter to companies, Neal said.

“The rate is the advertised number,” he said. “The deductions and exclusions frequently become more important to them.”

Senate Finance Committee Democrats will meet soon to discuss the 2025 tax debate, and Sen. Mark Warner (D., Va.) said he is still in wait-and-see mode on Biden’s call for a 28% rate. However, he said: “It’s interesting when I hear from some corporate CEOs who argue for a competitive tax rate but then also complain about our $34 trillion debt.”

Sen. Elizabeth Warren (D., Mass.), who sits with Warner on the tax-writing Finance panel, said Democrats should insist on higher corporate taxes as one of their red lines in the 2025 debate, even to the point of being willing to let the expiring tax cuts lapse.

“Democrats don’t need to be suckers this time,” she said Monday. “We can turn away from our history of bad dealmaking.”

Republicans don’t have a fixed plan, either.

“I’m not going to get pinned in a numbers game,” said Rep. Jason Smith (R., Mo.), chairman of the Ways and Means Committee. Smith has said some Republicans might want to raise the rate.

“I would go lower,” said Rep. Ralph Norman (R., S.C.). “Taxes—I don’t care what the liberals say—taxes let people spend their own money, incentivizes our economy.”

Even those who might want to lower the 21% rate recognize that it doesn’t expire. And to the extent Republicans feel constrained by budget deficits, they might want to devote more attention to the tax pieces that do expire and carry a $4 trillion price tag for full extension.

“I don’t support raising taxes. I’m not a fan of raising rates,” said Rep. Ben Cline (R., Va.). “I wouldn’t support raising rates, but I would be premature to say that the corporate rate and what it is shouldn’t be part of the conversation.”

https://archive.is/VDoGd#selection-6149.0-6545.54

This is what Politico Playbook is saying about Iowa.

If these Iowa numbers are real, there is no way Biden can win in Wisconsin and Minnesota. He can't overcome the rural vote for Trump.

https://x.com/CitizenFreePres/status/1803293586332479771

Republican senator blocks ban on bump stocks for guns brought by Democrats

Sen. Martin Heinrich, D-N.M., sought unanimous consent to pass the BUMP Act, but Sen. Pete Ricketts, R-Neb., objected for the GOP, effectively blocking the legislation.

Updated June 18, 2024, 5:07 PM EDT By Sahil Kapur and Frank Thorp V

WASHINGTON — Senate Democrats sought to pass legislation Tuesday banning bump stocks for firearms after the Supreme Court overruled a previous ban, but a single Republican objected on behalf of his party, effectively stalling the bill.

Backed by Senate Majority Leader Chuck Schumer, Sen. Martin Heinrich, D-N.M., sought “unanimous consent” to pass his BUMP Act that would prohibit the devices, which modify semi-automatic weapons to fire bullets more quickly.

The New Mexico senator said he’s a firearm owner who sees no purpose for bump stocks other than to facilitate mass shootings, as in Las Vegas in 2017, when a gunman killed dozens of people at a music festival and more than 500 people were injured.

“The Las Vegas gunman was able to murder and injure so many so quickly because he used a deadly device known as a bump stock,” Heinrich said on the Senate floor. “There’s no legitimate use for a bump stock. Not for self-defense, not in a law enforcement context, not even in military applications as they’re less accurate than a standard fully automatic military platform. But what they are tailor-made for is a mass shooting.”

But the bill was met with an objection from Sen. Pete Ricketts, R-Neb., blocking it from moving forward. The objection was backed by Senate Minority Leader Mitch McConnell and many other Republican senators, marking a turnaround after many of them championed a bump stock ban imposed by the Trump administration after the Las Vegas massacre.

Senate Democrats try to ban bump stocks after SCOTUS ruling: Ricketts labeled the bill “a gun-grabbing overreach," saying it is written vaguely and could give the Biden administration power to target “common firearm accessories, not just bump stocks.”“That’s really, really scary,” Ricketts said, calling the measure an infringement on the rights of law-abiding gun owners.

He labeled it “another day in the Democrat summer of show votes,” following recent votes on protections for IVF and contraception which were also blocked by Republicans.

The clash comes in the heat of an election year, when Republicans are running as staunch supporters of gun rights while President Joe Biden and Democrats call for stricter firearm laws. The move Tuesday followed a Supreme Court decision last week saying the executive branch may not use existing law to ban bump stocks, although the 6-3 ruling along ideological lines kept the door open for Congress to regulate the accessories with a new law.

Unanimous consent is one mechanism for the Senate to pass legislation speedily, often used for non-controversial measures. Schumer can also bring the bump stock bill or other legislation up through the regular process, which takes more time and requires 60 votes to break a filibuster. That means at least 9 Republicans would have to support it if Democrats and independents stick together.

Before the unanimous consent request, Schumer didn’t say whether he’d bring up the bill through regular channels if it stalled, imploring Republicans to “see the light” and not block it. “Many of them were extremely supportive of this when President Trump did it as a regulation,” Schumer said. “Donald Trump is hardly a friend to gun safety. But I’m just shocked that the Supreme Court will be even to the right of him.”

Heinrich warned that if Congress doesn’t prohibit bump stocks, “street gangs and cartels and mass shooters” may be able to access these devices “and turn them against our communities.” He added: “This will not be the last time you hear about these devices on the floor of the Senate.”

https://www.nbcnews.com/politics/congress/republican-senator-blocks-ban-bump-stocks-guns-brought-democrats-rcna157516

June 18, 2024, 1:15 PM EDT; Updated: June 18, 2024, 2:27 PM EDT

Senate Democrats Pull Vote on Trial Court Nominee Kasubhai (1)

Tiana Headley

GOP views Mustafa Kasubhai as too radical. Would be one of few Muslim federal life-tenured judges

Senate Democrats canceled a procedural floor vote to advance Biden nominee Mustafa Kasubhai to be a judge on Oregon’s federal district court.

Majority Leader Chuck Schumer (D-N.Y.) told reporters a planned vote to invoke cloture, or end debate, on the nomination was pulled Tuesday due to attendance issues and the vote will be rescheduled “soon.” Democrats hold a 51-49 majority in the chamber.

Kasubhai, a magistrate judge for the same court, has had a prolonged path to confirmation to the US District Court for the District of Oregon. He’d be one of only a handful of Muslim Americans ever to serve as life-tenured federal judges.

Kasubhai has faced intense opposition from GOP lawmakers who’ve said that he’s too radical for the federal bench. Senate Judiciary Committee Republicans had questioned Kasubhai during his October 2023 confirmation hearing on his views regarding diversity, equity, and inclusion and guidance he created for the use of preferred pronouns and honorifics in his courtroom.

Republicans also questioned whether he was a Marxist based on his past writings, some of which date to his time as a law student.

Sen. Robert Menendez’s (D-N.J.) absence amid his bribery trial in Manhattan federal court, and the potential defection of West Virginia Democrat turned Independent Sen. Joe Manchin, have loomed as potential obstacles to confirming President Joe Biden’s most controversial judicial nominees. Manchin has said he won’t support nominees who don’t have Republican backing.

https://news.bloomberglaw.com/us-law-week/senate-democrats-pull-vote-on-us-trial-court-nominee-kasubhai

Charlie Spiering Discusses The Democrats' Presidential Succession Plan

Dems are trying to replace Joe Bidan…

13:33

https://rumble.com/embed/v4zz4ni/?pub=4

Dr. Wolf On Fauci Accountability

(This monster needs to be prosecuted, starting with a dog collar, snakes, fleas, flies, and cockroaches in a plastic box, taking bites at him, and don't cut his vocal cords.)

16:56

https://rumble.com/embed/v4zz25r/?pub=4

>>21049707

Madcow still protecting Fauci, she's justifying what he did. She says he's under attack by Trump and his supporters. She is such a fucking liar!

>>21049707

Georgia news is still saying the vax is safe and effective, and there's a new shot out, then they said it protects from ever getting Covid, etc someone needs to correct them. But the CDC is here in ATL and releasing this bullshit still

Avivi: IDF Dealing With Last Stronghold Of Hamas In Rafah

9:56

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Wolicki: This War Is Israel's Moment Of Decision. War Cabinet is an internal issue, No strategic influence to dissolve it.Bidan was friendly to Hamas, Hezbollah, Iran etc., he is not about supporting Israel.

8:50

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THEY'RE ALL CHEAP FAKES!!!😭🤣🤣🤣KEK

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Todd Bensman Reports On Eight Tajik Border Crossers Arrested For Terror Plot

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https://rumble.com/embed/v4zz073/?pub=4

19 Jun, 2024 14:37

Ukraine ‘snatching’ US Patriot missiles promised to Switzerland

Washington has promised Kiev priority treatment in receiving American arms

The US has delayed the contracted delivery of long-range interceptor missiles to Switzerland in order to prioritize Ukraine’s military needs, Swiss media reported on Tuesday citing authorities.

President Joe Biden announced last week that foreign buyers of American arms will have to get in line behind Kiev, saying Ukraine needs them more in order to keep fighting Russia. Switzerland is among the nations affected by the decision, the daily newspaper Blick reported.

Last fall, the European nation ordered PAC-3 missiles for the US-designed Patriot system, worth 300 million Swiss francs ($340 million). However, the promised shipments will not come on time due to the Ukraine conflict, several sources in theSwiss defense ministry told the news outlet, which it described as Kiev “snatching” the arms. The Swiss military later confirmed to the press that the

report was true.

The situation shows that “Switzerland needs an independent and robust defense industry again, and to diversify procurement among manufacturers and countries,” it said.

The US last year authorized Switzerland to procure up to 72 advanced MSE PAC-3 interceptor missiles for a total price of $700 million. The delivery was expected sometime in the late 2020s or early 2030s, according to sources. It remains unclear how the new delay will affect the schedule.

Washington reportedly said the change of the contract terms fit the ‘force majeure’ clause, which allows for the alteration of an agreement due to serious unforeseen circumstances. The Ukraine crisis constitutes a national security issue for the US, it reportedly told Swiss officials.

“This is like during the Covid-19 pandemic: when there are problems, each country looks after itself,” Swiss MP Thomas Hurter told Blick of the situation.“The US decision shows how quickly reliability can change.”(so Bidan is now alienating another Ally)

He urged the government to revisit its plan to phase out the current fleet of fighter jets, which it intends to replace with Lockheed-made F-35s. Switzerland ordered 36 of them last year for a sum of over $6.8 billion to be supplied between 2027 and 2030, so that its Air Force could retire the aging F-5 Tigers and F/A-18 Hornets.

https://www.rt.com/news/599576-patriot-missiles-ukraine-switzerland/

BOOOM!!! This is great

Finally CNN gets some truth!

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DAVE CHAPPELLE KNOWS!!!😎🔥🔥🔥

Love this clip

1:48

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