By Hans Nichols, Axios
Sen. Joe Manchin (D-W.Va.) claimed that he didn’t close the door to a climate and energy package with Senate Majority Leader Chuck Schumer, but that he’s ready to support a plan to lower prescription drugs costs this month.
Driving the news: Manchin used one of his favorite venues — a popular West Virginia radio show hosted by Hoppy Kercheval — to say that he simply wants more time before deciding on legislation that raises corporate taxes and invests up to $300 billion in clean energy. Continue reading here.
PATRIOTIC MILLIONAIRES
Why Congress needs to make taxing the rich part of the plan to address inflation, contributed opinion by Morris Pearl, Fortune, July 8, 2022
To make his plan a reality, Biden now needs Congress to do its part. Thankfully, the notoriously recalcitrant Senator Joe Manchin has publicly expressed his willingness to work with Democrats to pass some form of “skinny” Build Back Better plan that includes tax increases on the rich. Americans of all political stripes want the federal government to fix inflation, and they deserve a solution that doesn’t cause more harm to poor and middle-class Americans. The way to do that isn’t endless rate hikes by the Fed or strongly worded Tweets directed at gas station owners–it’s taxing the wealthy and corporations.
Morris Pearl is a former managing director of BlackRock. He is the chair of the Patriotic Millionaires.
INSTITUTE ON TAXATION AND ECONOMIC POLICY (ITEP)
Tax and Climate Provisions Are What Americans Want and Need, ITEP News Release
In response to conflicting reports on negotiations with Sen. Joe Manchin of West Virginia on tax increases and climate provisions, Amy Hanauer, ITEP Executive Director, released the following statement:
Sen. Joe Manchin may be uncertain about higher taxes on the rich and corporations, but the American people are not. Large majorities of Americans support the tax reforms that President Biden has fought for, and with good reason. These proposals would ensure that profitable corporations contribute to the society that makes their profits possible. They would ensure that the most fortunate among us pay their fair share to the nation that made their fortunes possible. Sen. Manchin must choose between the interests of a powerful few and the needs of the American people and the planet.
ITEP Analyses of President Biden’s Proposed Corporate Tax Reform
The Institute On Taxation And Economic Policy (ITEP) is a non-profit, non-partisan tax policy organization that conducts rigorous analyses of tax and economic proposals and provides data-driven recommendations on how to shape equitable and sustainable tax systems. ITEP’s expertise and data uniquely enhance federal, state, and local policy debates by revealing how taxes affect both
U.S. DEPARTMENT OF THE TREASURY
The Made In America Tax Plan
This report describes President Biden’s Made in America tax plan, the goal of which is to make American companies and workers more competitive by eliminating incentives to offshore investment, substantially reducing profit shifting, countering tax competition on corporate rates, and providing tax preferences for clean energy production. Importantly, this tax plan would generate new funding to pay for a sustained increase in investments in infrastructure, research, and support for manufacturing, fully paying for the investments in the American Jobs Plan over a 15-year period and continuing to generate revenue on a permanent basis.
To start, the plan reorients corporate tax revenue toward historical and international norms. Of late, the effective tax rate on U.S. profits of U.S. multinationals—the share of profits that they actually pay in federal income taxes—was just 7.8 percent. And although U.S companies are the most profitable in the world, the United States collects less in corporate tax revenues as a share of GDP than almost any advanced economy in the Organization for Economic Co-operation and Development (OECD).
Additional Recommended Reading: FACT SHEET: The American Jobs Plan, The White House Scroll down to “The Made In America Tax Plan.”
GLOBAL MINIMUM CORPORATE TAX
G20 Signs Off On 15% Global Minimum Corporate Tax—Here’s How It Will Work, Forbes
The new tax system—expected to take effect in 2023—has been agreed to by 132 countries after meetings in July 2021 held by the G20 and the Organization for Economic Co-operation and Development. It sets an effective global minimum tax of 15% on multinationals with more than $890 million in revenue.
DELOITTE ECONOMICS INSTITUTE REPORT
The turning point: A new economic climate in the United States, January 2022
In this report, the Deloitte Economics Institute presents a portrait of a future the US could create if it uses this valuable window of opportunity to rapidly decarbonize its economy. Importantly, this report also demonstrates that the costs of this transformation—an oft-cited barrier— could actually be relatively modest, as compared to the consequences of insufficient action. And the US has everything it needs to rapidly begin this transformation today.
