Small Businesses Call for Corporate Buffett Rule

New Report Shows GE, Verizon and 35 Other Big Businesses Paid No Income Tax in 2010 on Combined Profit of $50 Billion

** Business owners available for comment nationwide **

Nov 03, 2011, 17:47 ET from Main Street Alliance

  

WASHINGTON, Nov. 3, 2011 /PRNewswire/ -- Statement from Business for Shared Prosperity, Main Street Alliance and American Sustainable Business Council, who together represent over 300,000 businesses and business men and women:

The report released today by Citizens for Tax Justice and the Institute on Taxation and Economic Policy underscores the need for tax reform to close loopholes that reward Big Business for offshoring U.S. profits and jobs, robbing our nation of needed revenues.

The 280 profitable large corporations in the report paid an effective tax rate of half the official rate; 37 of them paid no income tax at all on combined 2010 profits of $50 billion. That $50 billion is more than 50 times the entire budget of the Small Business Administration.

Corporate taxes funded more than a quarter of federal outlays in the 1950s; last year they funded just 6 percent. As we said in our joint letter Tuesday to the Congressional Supercommittee, we need to level the playing field for small business, stop corporate tax dodging, and raise revenue to rebuild the infrastructure and public services that underpin our economy.

"We need a Buffett Rule for corporations as well as wealthy individuals," said Scott Klinger, director of tax policy for Business for Shared Prosperity. "Warren Buffett spotlighted the madness of a tax code that lets him pay a lower rate than his secretary. Likewise, Big Business shouldn't be paying lower taxes than small businesses."

"Big businesses are getting away with taxation murder," said Frank Knapp, President and CEO of the South Carolina Small Business Chamber of Commerce and Vice Chairman of the American Sustainable Business Council. "They pay little or no taxes on massive U.S. profits and then have the gall to lobby for lowering the 'high' corporate tax rate. Patriots pay their taxes; they don't dodge them."

"It would be budgetary suicide to accept corporate tax reform that doesn't raise new money," said Kelly Conklin, owner of Foley-Waite Associates in Bloomfield, NJ and Main Street Alliance steering committee member. "We shouldn't reward companies like GE and Verizon who dodge their taxes and stick us with the bill."

View report here.

 

SOURCE Main Street Alliance



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