Raise the Corporate Tax Rate to 28%: $1.35 trillion (over 10 years)
The Trump-GOP tax law slashed the corporate tax rate from 35% to 21%, the lowest rate in decades. For every percentage point increase in the corporate tax rate, Congress can raise $130 billion in new revenue. ATF’s position is that the corporate rate should be raised back to 35%.
Fully Implement the Biden-Harris Administration’s International Tax Reforms: $630 billion
Multinational corporations often use accounting gimmicks and other strategies to disguise profits earned in the U.S. These reforms would reduce incentives for offshoring of American factories and jobs by increasing tax rate on foreign profits and bringing us into full compliance with the OECD international corporate tax agreement.
End Wasteful Tax Breaks for Corporations, Pass-Throughs, & Partnerships: $600 billion
The tax code is riddled with special loopholes that are exploited by big businesses. Congress should be expanding restrictions on executive pay deduction ($270b), requiring longer amortization periods for advertising tax-write offs ($150b), limiting corporate reorganizations ($40b), preventing basis shifting through partnerships ($15b), and strengthening the corporate alternative minimum tax ($140b).
Strengthen the Medicare Net Investment Income Tax: $800 billion
Capital gains are fully exempt from the payroll taxes that all workers pay on their wages. There is a modest 3.8% Net Investment Income Tax (NIIT) on capital gains for high-income people, but some pass-through business owners get a special exemption. The Biden-Harris Administration wants to raise the NIIT rate to 5% and close the pass-through loophole, all to better fund Medicare.
Enact a Special Tax on Billionaires: $500 billion
The ultra-wealthy can defer paying income taxes for decades by living off loans borrowed against their growing unrealized capital gains. The Biden-Harris Administration has proposed a 25% minimum tax on all income, including unrealized gains, for the super rich.
Quadruple the Stock Buyback Tax: $170 billion
The Inflation Reduction Act implemented a 1% tax on corporations which waste company cash repurchasing their own stock. The Biden-Harris Administration has proposed raising the rate to 4%.
Overhaul the Estate Tax: $400 billion (estimated)
Congress should restore the progressive estate tax-rate structure by raising the top rate,, and curb egregious abuses of estate-tax law such as Grantor Retained Annuity Trusts (GRATs) and valuation discounts.
Establish a Millionaires Surtax: $630 billion
This proposal would establish a 10% surtax on any household income over $2 million.
Create a Financial Transactions Tax: $750 billion
Wall Street investors should pay a transaction tax on every trade, the way ordinary Americans pay sales taxes. This proposal would levy a 0.1% tax on stock, bond and derivative trades.
Tax Income from Wealth More like Income from Work: $300 billion
Investment income like long-term capital gains and dividends are taxed at roughly half the highest rate paid on income from labor. Congress should eliminate the tax differential between income earned through labor and income generated by capital.
These policies represent over $6 trillion in NEW revenue over the next decade, equivalent to 1.8% of GDP or 10% increase to current baseline revenue projection.