Tax Fairness Coalition Decries the Hypocritical Double Standard of Not Paying for This Corporate Tax Giveaway While Demanding Other Spending is Paid for, and Releases Data Showing that Companies Pushing for the Tax Break Already Pay Low Corporate Tax Rates
Washington, D.C. – Ahead of a Wednesday vote in the U.S. House of Representatives to permanently extend the Research and Development (R&D) Tax Credit without paying for it, which would cost $181.6 billion over ten years, Americans for Tax Fairness (ATF) has written a media backgrounder that makes these key points:
- The R&D Tax Credit is very costly, and it should be paid for by closing other corporate tax loopholes.
- Passing this bill will illustrate the hypocrisy of congressional conservatives who demand that any new spending benefitting the American people be paid for with cuts elsewhere in the budget, but they apply different rules to corporate tax breaks by not requiring that they be paid for.
- This and other corporate tax breaks should be dealt with as part of corporate tax reform, which both parties have said is a priority this Congress.
ATF also released data showing 15 highly profitable companies that are members of the R&D Credit Coalition, a group leading lobbying efforts in support of the R&D tax break, paid an 18.3 percent effective corporate income tax rate on average over a recent five-year period. That’s about half the statutory rate of 35 percent. Some companies paid little in federal income taxes or even got tax refunds.
Americans for Tax Fairness is a diverse coalition of 425 national and state endorsing organizations that collectively represent tens of millions of members. The organization was formed on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. ATF is playing a central role in Washington and in the states on federal tax-reform issues.