A group of congressional Democrats and Independent Sen. Bernie Sanders recently called out numerous profitable U.S. corporations for paying their executives more than what they pay in federal income taxes. This issue, they argued, can be largely attributed to former President Donald Trump’s significant tax-cut package that Republicans are seeking to extend.
The lawmakers pointed out that in the years following the 2017 tax-cut package, 35 companies made $277 billion in profits and paid their executives $9.5 billion, surpassing their federal tax obligations. Seeking further tax breaks, Republicans plan to reduce the corporate income tax rate from 21% to 15%, providing Fortune 100 corporations an additional $50 billion annually.
Sens. Elizabeth Warren and Sheldon Whitehouse, along with Rep. Greg Casar, led letters to these companies, including Netflix, Ford, and Tesla, noting extreme cases like Tesla, which made $4.4 billion in profits without paying any federal income tax. The lawmakers demanded answers from CEOs on how much they would have paid in taxes without the 2017 Tax Cuts and Jobs Act.
The 2017 tax law spurred increased CEO pay, with companies focusing on stock buybacks, benefiting executives. The Democrats emphasized the need for corporations to pay their fair share and hinted at future tax reforms to ensure big businesses contribute adequately to the tax system.
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