Biden’s Plan Would Raise Minimum Corporate Tax to 28%, an Increase of 40%

2024-03-07 14:00:18

I wish I could giggle and snort over the stupid “fact sheet” sent out by the White House today regarding taxes on those evil corporations and rich people.

Because obviously raising the minimum corporate tax rate would change everything:

Raising the corporate tax rate to 28% and the corporate minimum tax to 21%. President Biden believes large corporations should pay their fair share, and is committed to reversing the massive tax giveaway to big corporations that Republicans enacted in 2017. President Biden would raise the corporate tax rate to 28%. He would also ensure that billion-dollar corporations pay at least 21% of their income in taxes, building on the Inflation Reduction Act’s (IRA) corporate minimum tax.

Stock buyback tax:

Quadrupling the stock buyback tax. In response to the surge in corporate stock buybacks after the Trump tax cuts, President Biden signed into law a surcharge on stock buybacks that encourages businesses to invest in their growth and productivity as opposed to funneling tax-preferred profits to wealthy and foreign shareholders. President Biden would quadruple the stock buyback tax from one percent to four percent to address the continued tax advantage for buybacks and encourage corporations to invest in productivity and the broader economy rather than windfalls for investors.

Biden also added the “tax breaks” for executives:

Denying corporate tax breaks for multi-million-dollar executive compensation. Executive pay has skyrocketed in recent decades, with CEO pay averaging more than 300 times that of a typical worker in 2022. The corporate tax cuts in the 2017 Republican tax law only made this problem worse, giving executives huge raises while doing nothing for low- and middle-income workers. When corporations give huge pay packages to their executives, President Biden believes they don’t deserve a tax break. That’s why he’s proposing to deny corporations a tax deduction when they pay over $1 million to any employee.

These last two bullet points are interesting, mainly because of how Biden points out the Trump tax cuts.

Biden doesn’t reveal that corporations have avoided income taxes for a long time.

The changes in stock options might help a little bit, but I doubt it by much. Those who run is dumb if it does not always reinvest

Not that I care. Taxation is theft.

Anyway, this is a CBS report from 2017 revealing how profitable companies haven’t paid taxes over the past eight years from then:

Other industry-specific tax breaks include write-offs for business activities such as building NASCAR race tracks or research, as well as “accelerated deprecation,” which effectively lets companies defer taxes on equipment and other assets.

Companies can also receive a deduction for domestic manufacturing, a tax break created under the American Jobs Creation Act of 2004. The goal was to help revitalize American manufacturing, but companies have pushed the meaning of “manufacturing” to mean, well, almost anything. For instance, companies that are using the tax break include Starbucks (SBUX), Hollywood film producers and online reservation system OpenTable, ITEP said.

Everything they have done (with a few exceptions) is legal. 100% legal. You want to change anything you have to change the tax code.

Change the entire tax code. Get rid of all the write-ups and credits. Also the assets.

It’s why real estate is so lucrative.






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Biden’s Plan Would Raise Minimum Corporate Tax to 28%, an Increase of 40%

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