Heres a reply from Jeff Merkley that explains one way we can work toward increasing tax revenues for the federal deficit. The solution is not all cutting aide to people in need. Dear Renee, Thank you for contacting me to share your support for closing corporate tax loopholes. I appreciate hearing from you on this issue. I agree that we need to reform the federal corporate tax code to close loopholes and ensure the wealthy and well-connected pay their fair share. Although the top marginal tax rate of 35 percent is higher than most other developed countries, there are many special deductions which make the actual tax rate corporations pay much lower than what the top tax rate would suggest. In some industries, corporations can end up paying a tax rate in the single digits. Between 2008 and 2010, thirty of the Fortune 500 corporations paid either zero or negative aggregate federal income taxes. Our corporate tax code should be simpler, fairer, and less wasteful. In the past I have supported legislation that would close corporate tax loopholes such as the Repeal Big Oil Tax Subsidies Act. This legislation would have repealed $21 billion in special tax breaks for oil and gas companies while using the revenues to extend clean energy tax credits and to reduce the nations budget deficits. Reform of the corporate tax code that eliminates wasteful loopholes can serve as a key component of deficit reduction efforts. I also supported legislation to replace sequestration – automatic budget cuts that affect everything from Head Start to law enforcement – with cuts to spending on tax loopholes for powerful special interests. Unfortunately, this legislation was blocked from even getting to the Senate floor for debate by a minority filibuster. Please know that I will continue to look for opportunities to address corporate tax loopholes. Thank you, again, for your input. I hope you will continue sending me your thoughts and ideas. All my best, Jeffrey A. Merkley United States Senator Jeff Merkley
Posted on: Fri, 08 Nov 2013 22:41:52 +0000
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