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Kurt Faulhammer

Revenue Neutral Corporate Tax Reduction Act

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Mr. Faulhammer, for himself, introduced the following bill;

A BILL

To lower the corporate tax rate in a revenue-neutral manner

SECTION 1. SHORT TITLE.

(a) This bill shall be cited as the Revenue Neutral Corporate Tax Reduction Act.

SECTION. 2. FINDINGS

  1. A lower corporate tax rate incentivizes investment in the United States spurring economic growth

  2. Without accompanying deductions massive corporate tax rates cuts would contribute heavily to the national debt

  3. With an accompanying 65% cap on corporate gross interest deductions with a 79% exception for financial institutions a reduction of the corporate tax rate to 25% can be fully funded without contributing to the national debt

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."

(b) 26 U.S. Code § 11 (b) is stricken entirely.

(c) 65% cap rate on corporate gross interest deductions

(d) 79% cap rate on corporate gross interest deductions for financial institutions

SECTION. 3. ENACTMENT.

(a) This bill shall be law immediately upon the passage of Congress and the signature of the President.

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Mr Speaker,

If anything this bill does not go far enough, 25% is still higher than many nations set their rate of corporation tax but it is a step in the right direction. I urge all members of this House to join the bipartisan push for this bill.

I yield.

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On 7/8/2018 at 3:28 PM, Kurt Faulhammer said:

 

 

Mr. Faulhammer, for himself, introduced the following bill;

A BILL

To lower the corporate tax rate in a revenue-neutral manner

SECTION 1. SHORT TITLE.

(a) This bill shall be cited as the Revenue Neutral Corporate Tax Reduction Act.

SECTION. 2. FINDINGS

  1. A lower corporate tax rate incentivizes investment in the United States spurring economic growth

  2. Without accompanying deductions massive corporate tax rates cuts would contribute heavily to the national debt

  3. With an accompanying 65% cap on corporate gross interest deductions with a 79% exception for financial institutions a reduction of the corporate tax rate to 25% can be fully funded without contributing to the national debt

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."

(b) 26 U.S. Code § 11 (b) is stricken entirely.

(c) 65% cap rate on corporate gross interest deductions

(d) 79% cap rate on corporate gross interest deductions for financial institutions

SECTION. 3. ENACTMENT.

(a) This bill shall be law immediately upon the passage of Congress and the signature of the President.

Faulhammer
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Mr. Speaker,

While I agree with the Republicans on this issue, I propose that we keep the 25% corporate tax rate as written in the bill and slowly decrease the corporate tax rate for at least five years until it reaches 15%. However, I believe that all corporations should have that tax rate. Just as the average worker with different incomes, each pay a different tax. So, why can't companies do the same thing? That is why, Mr. Speaker, I propose to amend this legislation as followed:

Burch I. This amendment breaks corporate taxable income into separate tax brackets. This will lower the tax rate for small businesses as well as large corporations, but mostly to protect small business from closing down in their starting years and years to come if they remain a small business. 

Quote

SECTION. 2. ACTIONS.

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

"(a) Corporations in general

A 25 percent tax corporate tax is hereby imposed for each taxable year on the taxable income of every corporation as follows:

(1) Corporations with taxable income at $250,000 or less shall have a corporate tax rate of 22%;

(2) Corporations with taxable income at $250,001 to $500,000 shall have a corporate tax rate of 24%;

(3) Corporations with taxable income at $500,001 to $10,000,000 shall have a corporate tax rate of 26%;

(4) Corporations with taxable income at $10,000,001 to $500,000,000 shall have a corporate tax rate of 28%; and

(5) Corporations with taxable income at $500,000,001 or more shall have a corporate tax rate of 30%. 

(b) 26 U.S. Code § 11 (b) is stricken entirely.

(c) 65% cap rate on corporate gross interest deductions

(d) 79% cap rate on corporate gross interest deductions for financial institutions

I yield

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Mr. Speaker, 

If my amendment passes, I will amend it to reduce the tax rate as the Republicans would prefer. I believe we could compromise, let’s say 2% reduction every year for five years? Way better than the GOP can come up with. Let’s pass Burch I and do the work of the American people. 

I yield 

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Mr. Speaker,

 

I rise in objection to this bill even with the amendment that my friend from Nevada has introduced.  This legislation is designed to give corporations that make millions of dollars in revenue and pay CEOs millions of dollars in salary each year bigger bonuses bigger salaries. Trinkle down economics did not work with Reagan and Will not work today.   Hard-working Americans will not see a difference. The notion that this legislation will create jobs is a farce.  All this legislation is designed to do is allow the rich to get richer. 

 

I yield

Edited by Chris

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14 minutes ago, Chris said:

Mr. Speaker,

 

I rise in objection to this bill even with the amendment that my friend from Nevada has introduced.  This legislation is designed to give corporations that make millions of dollars in revenue and pay CEOs millions of dollars in salary each year bigger bonuses bigger salaries. Triangle down economics do not work I did not work with Reagan and it did not work.  Trinkle down economics did not work with Reagan and Will not work today.   Hard-working Americans will not see a difference. The notion that this legislation will create jobs is a farce.  All this legislation is designed to do is allow the rich to get richer. 

 

I yield

Mr. Vinick,

What is a corporate tax rate that makes us competitive with the rest of the world?

I yield

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Mr. Speaker,

I don't know what "triangle down" economics is, but real GDP grew over one-third during Reagan's presidency. GDP growth averaged nearly 4% during his presidency. To say whatever did "didn't work" is simply not accurate. 

I yield.

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Mr. Speaker,

A reduction in corporate tax rate is an increase in jobs here in the United States. Currently, countries are fleeing this country and putting their money in other countries to avoid these high taxes. They already pay high enough taxes to higher and keep employees let alone the turnover tax rate. Corporate taxes should be reduced as a way for the United States to invest in the corporations that call our great country "home." Its a little thank you to them for staying here, starting businesses and investing in our country. Its a little thank you to them for helping grow our economy and our GDP. This is important. If we can agree on one thing, this should be it. Even if my amendment fails, this bill will still decrease the corporate tax rate. When Obama raised the tax rate of corporations, many small businesses had to close. I know a few in particular. My family business almost had to close if it wasn't for my brilliant business plan. My husband can tell you, businesses have worked hard and many startups are getting boggled down in paying these taxes, setting aside 35% of their revenue each and every month. I may be a Democrat, but my constituents need these jobs here in the country instead of going to China, who by the way has a corporate tax rate of 25%, 15% for those who qualify, and their economy is extraordinary. We need this competitive edge when it comes to corporations. Let's stop playing Robin Hood and start providing for ours.

I yield 

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