Corporate Tax

Leaked electronic mail exhibits Verizon is pushing staff to oppose corporate tax hike

Telecommunications giant Verizon has urged its employees to oppose the corporate tax hike under consideration by Democrats in Congress, according to a leaked email received from The interception.

An internal email to staff tells workers that “your vote is critical” and that “you need to voice the battle”. The email contains a link that leads to a form letter that will be sent to the employee representative in Congress.

The email goes on to say that “American companies like ours would be seriously disadvantaged” if they were forced to pay a higher tax rate – although Verizon is one of them most monstrous Corporate tax evaders of the last decades, often paying a negative effective tax rate.

Even before Republicans ruthlessly cut corporate taxes from a statutory 35 percent to a dismal 21 percent in 2017, Verizon was incredibly effective at tax evasion. According to a report by Americans for Tax Fairness, Verizon made $ 19.3 billion in profits between 2008 and 2012, but paid no taxes – instead, it requested refunds of $ 535 million.

The Democrats are currently considering a conservative increase in corporate tax to 26.5 percent, a far cry from the pre-2017 rate. Still, Verizon told staff, “With the support of this grassroots network, Verizon will be at the forefront of this battle.” Of course, it won’t the grassroots fought, but on behalf of and by large corporations and lobbyists.

Here is the email Verizon sent to employees claiming that “up to 70 to 85% of corporate tax is borne by wage earners.” Https:// ukuBa1VdJc

– Ken Klippenstein (@kenklippenstein) October 14, 2021

The email reiterates a questionable claim that workers would be hardest hit if the corporate tax hike were implemented. “Recent studies have shown that 70 to 85 percent of corporate income tax is borne by wage earners,” says the email.

The source of this statistic is unknown, however The interception traces it back to the talking points of the Trump administration. Former Treasury Secretary Steve Mnuchin quoted a similar statistic in an interview Fox News in 2017, which put 70 percent of corporate taxes on workers’ shoulders while administration estimated that that number was 75 to 85 percent.

Economists have denied this theory, and professional fact checker found that there is no consensus among economists about who pays the tax burden of corporate tax increases. However, many of the sources that argue that workers end up paying most of the taxes are conservative.

Perhaps more importantly, Republicans promised the money would flow down when they cut the corporate tax rate in 2017, however Workers don’t need to see these benefits just yet. In the meantime, the corporation tax hike currently in question would flow into government aid programs like the expansion of the child tax credit Halve child poverty.

“I was pretty shocked that they would actually send us something like this,” said a Verizon official The interception. “I think it’s pretty pathetic that they threatened employees by saying we were the hardest hit.”

The company also cites its stake in the Reforming America’s Taxes Equitably, or RATE Coalition, to help keep the corporate tax rate low. PRICE consists of 35 large companies Including Disney, AT&T and Boeing. The group was active in a huge corporate lobbying campaign against the Reconciliation Act, in particular against the corporation tax increase. RATE members have Contributed $ 200,000 to Senator Kyrsten Sinema (D-Arizona), who is fighting against the increase in corporate taxes. RATE argues that a tax hike would reduce US competitiveness worldwide and harm workers.

Economists say the competitiveness argument is none other than a distraction by Republicans. “We find [corporate tax cut proponents’] key argument – that US companies are exposed to high corporate taxes – to be empirically wrong, ”wrote the Economic Policy Institute (EPI) in a 2017 report that was written before the 2017 tax cuts were signed.

“We find that even if the effective corporate tax rate were higher (if loopholes were closed), economic theories and data do not support the idea that lowering these rates would encourage further investment in the US or benefit Americans in general,” continued EPI continues. “We find that such cuts would primarily benefit a small number of high-income capital owners while increasing the regressiveness of the tax system as a whole.”

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