02 August 2022
Republicans misleadingly claim that “American manufacturers” pay half the corporate minimum tax to protect known tax evaders operating offshore.
Washington, DC: In response to the Republican Finance Committee’s release of misleading data suggesting the minimum business tax was primarily a tax on “American manufacturers,” Senate Finance Committee Chairman Ron Wyden, D -Ore., and Sen. Elizabeth Warren, D-Mass. , today released additional data provided by the Joint Committee on Taxation (JCT) that refutes this misleading claim.
About half of the 15 percent minimum corporate tax paid by “American manufacturers” would include known tax evaders in the pharmaceutical and technology industries, as well as other subcontractors such as the apparel industry, where 97 percent of clothing sold in the US. in overseas factories.
“Republicans always distort the truth about tax changes to protect corporate tax avoidance, but this new analysis shows they are clearly wrong about the proposed and manufactured minimum business tax. Big pharmaceutical companies, tech and clothing would account for half of the income from “manufacturers” under the minimum corporate tax. These companies are the ones who play the most games and avoid taxes by making their drugs, phones and shoes overseas. This is a tax minimum for tax evaders to stamp ‘Made in China’ on their products,” Wyden said. “Here’s an example of the kind of company we’re talking about: The Finance Committee just released a report showing that one of the world’s largest pharmaceutical companies paid about 9 percent in taxes while making almost $8 billion in profits. This company makes its best-selling drug overseas, while the vast majority of its revenue comes from American customers. This is the type of company that Republicans defend to justify their continued support for corporate tax dodging. The American people know this is wrong and want to see corporations with billions in profits pay their fair share.”
“This analysis shows that American manufacturing would not be harmed if multinational corporations paid a minimum tax of 15% on billions in profits. About 200 of the largest and most profitable corporations send jobs to the foreign while paying a lower tax rate than most businesses and workers,” Warren said. “Republican politicians and their corporate lobbyist friends rush to defend tax loopholes for billion-dollar corporations, while Democrats work to invest in clean energy technology manufacturing and lower costs for working families.”
The JCT analysis is available here.