Why are these corporate tax cuts considered “necessary,” when so many big corporations have been posting record profits and have an effective tax rate of less than 20 percent, or even 10 percent. Some corporations don’t pay any federal taxes at all.
Yet an analysis by the Institute on Taxation and Economic Policy earlier this year found that job growth at corporations that paid an effective federal tax rate of 20 percent or less was just about non-existent. In fact, a majority of these companies cut U.S. jobs from 2008 to 2016.
Meanwhile, within 10 years, middle-income families earning $75,000 or less will be paying higher taxes, according to the bipartisan Joint Committee on Taxation. That means as many as 47 million families — and not wealthy families — will be paying higher taxes in just a few years.