June 13, 2024

Institute for Policy Studies: A Fair Tax Agenda for Wall Street

ITEP Work in Action

The following is written testimony prepared for a June 12, 2024 Senate Budget Committee hearing on “Making Wall Street Pay Its Fair Share: Raising Revenue, Strengthening Our Economy.”

A recent Institute on Taxation and Economic Policy report looked at large U.S. firms that were profitable in every year from 2013-2021. The 44 financial firms in their sample had an average effective federal income tax rate of just 17.7 percent during the four years before the 2017 Tax Cuts and Jobs Act. After that law slashed the corporate tax rate from 35 percent to 21 percent, these firms’ effective rate fell to just 12.5 percent.

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