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Fair Taxation (Federal)

The familiar theme from Montana's supermajority is now playing out at the federal level: More tax breaks for the wealthy and large corporations

Republican House bill: American Families & Jobs Act is none of the above. It features more tax cuts for the wealthy and large corporations and pays for those tax cuts by gutting some of the climate change portions of the Inflation Reduction Act passed in 2022.

Background: During last month’s budget fight, House Republicans threatened to crash the economy and forced cuts to vital services because of a claimed concern about federal debt. Now that that fight is over, House Republicans have immediately turned to pushing costly tax cuts for the rich. This week, they’re opening the battle with a markup on legislation to renew cuts and reverse increases in corporate taxes from the 2017 Trump-GOP tax law.


This is straight out of the playbook Republicans have been using for decades:

  1. Cut taxes for the wealthy and corporations, which blow up the deficit

  2. Blame the deficit on programs and services for working families

  3. Demand harmful cuts to programs for working families

  4. Repeat


The 2017 Trump-GOP tax scam was heavily skewed to the wealthy and corporations, and Republicans are now working to make them permanent. The package coming to the floor next week is the opening salvo in that battle.


Many of the corporate tax cuts in the package are egregious giveaways to firms that need them least. Hugely profitable billion-dollar companies like Google, Apple, Intel, Microsoft, and Boeing already receive billions of dollars in federal tax subsidies for research and experimentation (R&E) through the permanent research tax credit. Now they’re asking for hundreds of billions more.


The legislation only covers two years, but if the changes are made permanent—as the GOP has made clear it wants—these tax benefits for business would cost over $1 trillion. And the legislation is heavily slanted towards the rich, including a temporary boost to the standard deduction that mostly benefits high-income households. Next year the richest 1% of families would get an average tax cut of over $16,000—the poorest fifth would get only $40. Foreign investors would walk away with almost $24 billion in U.S. tax savings.


To the extent that any of the GOP package is offset in the short-term, it's paid for by repealing part of the Inflation Reduction Act's investments in green energy. Thus far, the only tax increases we have seen House Republicans support are those that worsen climate change and hurt families.

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Source: Americans for Tax Fairness

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