As he prepares to oversee the fiscal portions of President Biden’s infrastructure plan, House Ways and Means Committee Chairman Rep. Richard Neal, D-Mass., Announced that he would receive donations from the PACs this year some of the most extreme corporate tax evaders in America.
In the three years that Trump’s tax cuts went into effect, utility holding Duke Energy has posted pre-tax income of $ 7.9 billion while paying no federal income tax and an effective federal tax rate averaging -15.5 % would have. according to the non-profit Institute for Taxes and Economic Policy (ITEP). Shipping giant FedEx also paid no federal income tax during that period, earning an average effective tax rate of -12.8% on its pre-tax profit of $ 6.9 billion.
The Neal campaign last month donated $ 1,000 from the PACs of both companies. This is evident from the recent campaign funding filing. The Neal Committee oversees all tax laws.
Duke Energy and FedEx rank third and fourth, according to ITEP, as they had the lowest average tax rates under the Trump tax burden of any profitable American company.
As of 2017, FedEx PAC has given Neal a total of $ 19,500 and Duke Energy has given $ 15,500.
Biden proposed paying his infrastructure bill by increasing corporate tax rates from 21% to 28% and passing measures in Congress to combat offshore tax evasion and other strategies that companies use to avoid paying federal taxes.
Neal has already told reporters that he only partially supports Biden’s plan to pay the bill and that he will make changes before his committee.
“We’ll hear what people have to say about the pay-fors,” said Neal on April 1st. “Presidents always give directions when they know they want Congress to improve proposals if you can improve them.” it.”
Fred Smith, FedEx chairman and CEO, has previously said he rejects Biden’s proposal to raise corporate taxes.
In the past, Neal advocated his desire to raise corporate taxes and use offshore accounting techniques and proposed many bills in previous sessions of Congress to do so. However, as Sludge previously reported, Neal abruptly stopped introducing bills to end corporate tax avoidance in 2015 when he became the top Democrat on the Ways and Means Committee.