Jump to content
TedderVision
Sign in to follow this  
Kurt Faulhammer

Revenue Neutral Corporate Tax Reduction Act

Recommended Posts

Mr. Speaker,

I am unfortunately unable to support the amendment offered by the gentleman from Nevada.  The purpose of the bill under consideration is to provide a significant reduction in the top marginal tax rate for businesses.  In other words, no business should be expected to pay more than 25% of its annual income to the federal government.  This means that no business will pay a higher rate than it presently does.  The amendment offered is not well considered and dilutes the bill to meaninglessness.  

I yield.

Share this post


Link to post
Share on other sites

Mr. Speaker,

As in meaninglessness, what does the Congressman from North Carolina mean? In protection of y amendment, the amendment creates different corporate tax brackets just as us private citizens have different tax brackets. It is absurd to keep a flat tax rate for corporations. This amendment lowers the tax rate for all businesses, including startup and small businesses. To reject this amendment is to reject small business and startup revenue protection. At first, I was congratulated by my own party on this amendment, and now it will not be supported. I am a Congressman and I am a business executive. This bill and amendment is important to me, personally and professionally. Let's get it passed.

I yield

Share this post


Link to post
Share on other sites

Mr. Speaker,

Under current law, the lowest rate of tax on business is 15% of any income between 0 and $50,000 annually.  Then the marginal rate increases to at least 25% for each further increment of income, strangely bouncing around between 35% and 39% at higher levels (meaning that in some cases the marginal rate is higher at lower increments!)(source).  

Speaking for myself, I am fine with keeping the very lowest rate of 15% as it exists under current law, and at no more than 25% for every other corporation.  Therefore, I propose this amendment:

 

SECTION. 2. ACTIONS.

(a) 26 U.S. Code § 11 (a) is amended to read as follows:

"(a) Corporations in general

A 25 percent tax is hereby imposed for each taxable year on the taxable income of every corporation, except for income up to $50,000, which shall be subject to a 15 per cent tax."

Share this post


Link to post
Share on other sites

In general, for those that pay attention, corporate taxes are a pretty polarizing issue in America. Typically, Republicans are very supportive of low rates as an engine to economic success; typically Democrats see it as a tool to spread out prosperity and to take money from those who can afford it. Historically, Independents have evolved from the Dem. point of view, towards the Republican point of view- we know this because corp. tax rates have steadily fallen since the early 1900's, and that only happens if the decrease becomes a non-issue to a majority of Americans.

This debate had the makings of a true philosophical argument between Rep. Vinick and Rep. Swanner. Leaving aside the "Trinkle-Trickle-Triangle" misstatements, the potential debate never happened in a true sense and it was a missed opportunity for both sides. Mr. Vinick could have absolutely mentioned how destabilizing it is to have such a top down economy, and while Mr. Swanner did mention the Reagan cuts, he didn't really make the philosophical case that I think could have moved the zeitgiest.

Other party members chimed in, but not in a particularly bold or thoughtful way. That isn't to say it was meaningless, but at the end of the day what the folks back home want to know is: Why are YOU voting the way you're voting, and how is going to help YOUR district? Some of that is a practical argument, sure, and some of that is to reveal the philosophical underpinnings of what drives you in office.

On that score, the folks-back-home didn't see as much of that as they hoped. Neither side won or lost this particular debate, but the general feeling is that the current trajectory towards smaller corp. taxes will continue.

Edited by Pizzuto

Share this post


Link to post
Share on other sites

HATCH: Mr. President, the following bill has passed by a vote of 283-152 in the House and 62-38 in the Senate and awaits your signature or veto. Should you choose to do neither within the next 10 days, the bill will become law.

Share this post


Link to post
Share on other sites
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×