Friday, December 20, 2019
Institute on Taxation and Economic Policy, Corporate Tax Dodging Happens Because Congress Allows It to Happen:
As usual, corporate spokespersons and their allies are trying to push back against ITEP’s latest study showing that many corporations pay little or nothing in federal income taxes. One way they respond is by stating that everything they do is perfectly legal. This is an attempt by the corporate world to change the subject. The entire point of ITEP’s study is that Congress has allowed corporations to avoid paying taxes, and that this must change.
Anyone who reads ITEP’s corporate study will find detailed explanations of how Congress must change the law to ensure that corporations pay. Alright, we get it, the study is a little long. For your convenience, we also provided a two-page executive summary, and you will find that the recommendations on the second page all involve Congress changing those very laws that corporations use to avoid taxes.
People who read our reports know full-well that we are not suggesting that corporations are breaking the law. If we believed that was the case, we would call only for better enforcement of existing laws. The fact is, the existing law, including the changes brought by the Trump-GOP tax law, is a mess crying out for the types of reforms that we suggest.