According to a recent analysis conducted by the progressive Institute for Policy Studies (IPS) and Americans for Tax Fairness (ATF), it was revealed that numerous major U.S. companies have paid their top executives higher salaries than the amount they paid in federal taxes during the period from 2018 to 2022.
Passing the Republican-controlled House is highly unlikely for Biden’s proposal, which also includes higher taxes on individuals with a net worth exceeding $100 million.
The U.S. Chamber of Commerce, a powerful pro-business lobbying group, strongly criticized the president’s plan. In 2023, they invested an astounding $70 million in federal lobbying, surpassing all other interests in Washington.
According to Neil Bradley, the chief policy officer of the organization, he mentioned to The Hill that they have not reviewed the study yet. However, he added that it seems to be conducted by individuals with a political agenda who lack a comprehensive understanding of our tax system.
According to Bradley, companies are obligated to pay taxes on their profits only after deducting their expenses. In cases where a company does not generate any profit or chooses to reinvest its earnings into various initiatives like establishing a new plant or increasing employee wages, there are no profits left to be taxed.
He added that paying employees good wages and building new factories are positive actions that employers should take.
I have contacted Ford and Tesla for comment, and I am awaiting their response.
Taxing wealthy corporations and individuals is poised to become a pivotal issue in the upcoming presidential election, with the expiration of several provisions in the 2017 tax law by 2025.
In his State of the Union address last Thursday, Biden expressed his intention to increase the corporate tax rate, emphasizing the need for every major corporation to contribute their fair share.
“The key to achieving fairness in the tax code is by ensuring that large corporations and the extremely wealthy contribute their fair share,” stated President Biden.
