Corporate tax whiners

Corporate America is mad that the Inflation Reduction Act (IRA)—which may actually reduce inflationary pressures over the long term, if not now—will raise its taxes. The Financial Times has a nice collection of bleats from their trade associations: The bill would impose “significant new tax increases and unprecedented government price controls”, the US Chamber of Commerce warned. Its tax provisions would deal “a blow to our industry’s ability to raise wages, hire workers and invest in our communities”, said the National Association of Manufacturers. The Business Roundtable, which represents blue-chip companies in Washington, estimated… Read More

Fresh audio product

Just added to my radio archive (click on date for link): December 16, 2021 Sam Adler-Bell, author of this article, on the young counterrevolutionary new right • Jesse Eisinger of ProPublica on how the very rich can pay no taxes

Corporate tax deadbeats

Biden and Congressional Democrats are talking about raising the corporate tax rate. The latest proposal looks to be boosting it from 21.0% to 26.5%, marked down from the 28.0% level that the administration circulated in April.  While that would be a step in the right direction, it only begins to address the seven-decade erosion in what business pays. Graphed below is the effective tax rate for nonfinancial corporations, drawn from the national income accounts. “Effective” means the rate actually paid—taxes paid divided by profits—not the rate on the books before clever lawyers… Read More