Disappearing Corporate Tax Base
A new report from National People’s Action and the Center for Effective Government reveals the latest corporate bait and switch: corporations are paying less than ever before in taxes, leaving state and local governments to pick up the tab.
The report, called the Disappearing Corporate Tax Base: how to reclaim lost tax revenue to rebuild state budgets offers a new way forward.
If corporations paid their fair share, we could create 2.5 million new jobs, and rehire the 667,000 school teachers, first responders, and other state and city workers who remain out of work after losing their jobs to budget cuts.
Key findings from the report:
- Corporations are paying less in income taxes than they did at the beginning of the recession, leading to vast service cuts.
- If corporations paid taxes at Eisenhower administration levels, they would have paid $957 billion last year, $683 billion more than they did; if they had paid taxes at Richard Nixon era levels, they would have paid $461 billion in 2013, $188 billion more than they actually paid.
- For context: $188 billion in additional corporate revenue could create 3 million jobs, and just $36 billion could fund 667,000 school teachers, first responders, librarians, highway crews, caretakers of public parks, and other state and city workers.