May 18, 2011; Source: Bloomberg.com | A number of high profile nonprofits and unions called on Congress yesterday to increase taxes on corporations by eliminating tax subsidies. In doing so they have taken a leadership position that is in opposition not only to Republicans but also to President Obama, who is looking for an elimination of deductions and credits, but also seeks to cut the 35 percent tax rate on corporations.
The group, which includes the Service Employees International Union, the AFL-CIO, the Children’s Defense Fund, National Education Association, National Low Income Housing Coalition, and Citizens for Tax Justice writes, “we strongly believe most, if not all, of the revenue saved from eliminating corporate tax subsidies should go towards deficit reduction and towards creating the healthy, educated workforce and sound infrastructure that will make our nation more competitive.”
Corporations have been making themselves heard in force on proposals to alter the tax code, saying they are hampered in overseas competition because of their 35 percent tax burden and taxes on repatriated offshore profits.
The nonprofit coalition says that competitiveness depends more upon infrastructure and education than on tax breaks and urged Congress to examine the many ways in which corporations avoid paying the 35 percent levy.—Ruth McCambridge