Corporate Tax Plan Will Not Make Corporations Pay Their Fair Share of Taxes, says National People’s Action

Plan Won’t Help Families, Doesn’t Address our Nation’s Revenue Crisis

Washington, D.C.–(ENEWSPF)–February 23, 2012. The corporate tax reform announcement from Treasury Secretary Timothy Geithner comes as a disappointment to American families struggling to make ends meet. Instead of seizing the opportunity to require corporations pay their fair share of taxes, the Administration gives the 1% the advantage, said National People’s Action leaders. 

While the proposal would close some of the most blatantly abusive corporate tax loopholes, it trades away those gains by lowering the overall corporate tax rate from 35% to 28% and in some cases as low as 25%. The permanent lowering of the rate will actually cost the federal government $700 billion in needed revenue over 10 years.

“The President’s announcement signals a victory for the 1%.  The lack of accountability demanded of Wall Street and the corporate sector is exactly what drove the financial crisis and expanded inequality in America.  Reducing tax rates for big corporations further demonstrates that big money in politics is paying big dividends for the corporate elite,” said George Goehl, Executive Director of National People’s Action.

The Obama Administration touts its new reforms as adding $250 billion in revenue to the federal budget, but leaves off the press release the permanent loopholes it keeps in place and the cost of the lower rate.  Even with additional off-sets, the very best that can be expected from this proposal is a result that is revenue neutral, adding nothing to the revenue-starved federal budget. 

“Wall Street CEOs are giving themselves multi-million dollar bonuses while we’re laying off workers, families are losing their homes, bridges are crumbling and children are going hungry. We need a solution, not more of the same,” said Iowa Citizens for Community Improvement member and former pastor Stephanie Simmons of Guthrie Center, IA.

National People’s Action and allies will be confronting corporate power directly through the 99% Spring.  Hundreds of thousands of everyday Americans are gearing up to confront corporations at their spring shareholder meetings to ensure Wall Street, corporations, and the 1% pay their fair share of taxes and to take back our democracy.  

National People’s Action (NPA) is a network of grassroots organizations with a fierce reputation for direct action from across the country that work to advance a national economic and racial justice agenda. NPA has over 200 organizers working to unite everyday people in cities, towns, and rural communities throughout the United States through direct-action, house meetings and community organizing.

Geographically, NPA consists of 26 organizations across the country that reaches from farmers in rural Iowa to youth in the South Bronx. We have affiliate organizations in 14 states with remote network offices in Washington D.C., California, New York and a central office in Chicago. Our target population is not limited to a geographical area or regional group but rather works with and on behalf of hard working Americans everywhere to ensure an equitable and just democracy. Our population includes people from all walks of life despite differences in age, race, sexual orientation, income and culture. We aim for an inclusive open population in which people feel welcome and a part of grassroots power organizing.