Senator Bernie Sanders (I-Vermont) is launching a crusade against corporate greed and tax evasion with his latest legislative endeavor, the Corporate Tax Dodging Prevention Act. Aimed squarely at the gaping loopholes that have allowed multinational corporations to hoard wealth offshore and evade their fair share of taxes, Sanders’ bill proposes sweeping reforms to the corporate tax code, striving to level the playing field for working Americans.
Introduced alongside Rep. Jan Schakowsky (D-Illinois) in the House, the bill targets the infamous tax avoidance tactics exploited by corporations, such as stashing profits in offshore tax havens and benefiting from artificially low statutory corporate tax rates. Specifically, the legislation seeks to equalize the tax rates for domestic and offshore incomes, putting an end to the preferential treatment that encourages firms to shift their operations and profits overseas. Furthermore, it proposes to roll back a Trump-era tax break that has only incentivized corporations to relocate assets and operations outside of the U.S.
Perhaps most strikingly, the Corporate Tax Dodging Prevention Act calls for a return to a pre-Trump corporate tax rate of 35%, a significant increase from the current 21% instituted by the GOP’s 2017 Tax Cuts and Jobs Act—a move that disproportionately favored the wealthiest individuals and corporations, exacerbating income and wealth inequality.
The impact of this legislation could be monumental. Over the next decade, it is projected to generate an additional $2.3 trillion in tax revenue, according to the Joint Committee on Taxation. This infusion of funds into the federal coffers would represent a significant step towards addressing the needs of working families and mitigating the growing economic disparity in the country.
Sanders’ proposal comes at a critical moment, as countless reports and studies have highlighted how many profitable corporations have managed to pay little to no federal income taxes in recent years. Entities like Amazon, Nike, and Netflix have notoriously leveraged offshore tax havens and other loopholes to reduce their effective tax rates to zero or even negative figures, all while posting record profits. This stark contrast underscores a rigged system that places the burden of taxation disproportionately on working and middle-class Americans.
The United States stands out among its peers for its remarkably low corporate tax revenue, a mere shadow of what it once contributed to the federal budget. While corporate taxes once accounted for 30% of total federal revenue, that figure has plummeted to just 9% today. Furthermore, compared to other Organisation for Economic Co-operation and Development (OECD) nations, the U.S. collects half the average corporate tax revenue as a percentage of its economy.
Sanders’ bill is not just a call for financial equity; it’s a battle cry against the entrenched systems of corporate privilege and greed. By pushing for these comprehensive reforms, Sanders and his allies are striving to ensure that corporations pay their fair share, redirecting those funds towards the public good and restoring a sense of fairness to the American tax code. As the debate over this legislation unfolds, it stands as a pivotal moment in the fight against economic inequality and corporate tax evasion.
