Republican lawmakers have threatened to crack down on corporate tax cuts and subsidies even as the party mounts a unified front to defend the Trump tax cuts that dramatically slashed the corporate tax rate to its lowest level in decades.
Republicans have railed against President Joe Biden's proposed tax increases on corporations and the wealthy, repeating dubious argumentsthat a slight increase in the corporate tax rate would make the United States less "competitive."But Republicans aren't justbattling the Biden administration. They're also up against a growing majority of Americans demanding big business pay their "fair share."
A Morning Consult polllast month found that 65% of voters, including 42% of Republicans, support a corporate tax hike to fund infrastructure investments. A Pew surveylast week found that 81% of Americans are bothered that "some corporations don't pay their fair share," including 59% who said it bothered them "a lot." An April Quinnipiac poll even found that voters are more likely to supportBiden's infrastructure proposal if it hikes taxes on corporations, putting Republicans who have spent decades defending corporate tax cuts in a bind.
Some Republicans have amped up their newfound anti-corporate rhetoric after former President Donald Trump spent years attacking large corporations, even as he cut their taxes from 35% to 21%. Sen. Ted Cruz, R-Texas, lashed out at "woke" corporations in a Wall Street Journal op-edprompted by corporate criticism of a slew of Republican voter restrictions in response to Trump's election lies. Cruz claimed he wouldswearoff corporate PAC money and threatenedbut did not actually promiseto reject future tax cuts.
"When the time comes that you need help with a tax break or a regulatory change, I hope the Democrats take your calls, because we may not," Cruz wrote while criticizing tax breaks for companies like Coca-Cola and Boeing.
Sen. Josh Hawley, R-Mo., echoed Cruz's callon Twitter and criticized corporate America for putting "Americans last." After last year's election, Hawley tweeted, "we are a working-class party now. That's the future."
Cruz went even further in an interview with The Hillon Friday, acknowledging his shift in response to the "rising populist movement."
"I think the most important political change of the last decade has been a socioeconomic inversion. Historically the caricature, at least, was that Republicans were the party of the rich and Democrats were the party of the poor," he said. "I believe that is precisely opposite to where we are today. Democrats today are the party of rich coastal elites and Republicans are the party of blue-collar workers."
Given the overwhelming poll numbers in favor of taxing corporations, it isn't surprising to see two presidential hopefuls try to latch on to the anti-corporate sentiment that has grown in the Trump era, although there is little evidence to back Cruz's assessment about an"inversion" between the two parties. But their statements are ironic given that both Cruz and Hawley backed Trump's corporate tax giveaway while their party, which has pushed to increase corporate power for decades, rejects any corporate tax increases.
"What Ted Cruz does and says are two very different things," longtime Democratic pollster Geoff Garin told Salon, predicting that "he will continue to take the calls of corporate CEOs, and take their money too, whatever his tweets might say."
Senate Minority Leader Mitch McConnell, R-Ky., said on Mondaythat there will be "none, zero" support from Republicans for Biden's proposal. "We're not willing to pay for it by undoing the 2017 bill," he added, calling it the Trump era's "most significant domestic accomplishment" even though it failed to meet any of the party's stated goals, such ashigher longterm corporate investments, increasing hiring and wagesor paying for itself.
Rep. Kevin Brady, R-Texas, the author of the 2017 tax bill, vowed on Mondaythat "there's going to be a real fight over these tax increases" because "we shouldn't be funding infrastructure on the backs of American workers."
But Brady's party is pushing a bill that would shift the entire tax burden of infrastructure investments from corporations to workers, while Biden has so far made good on his promise not to raise taxes on households earning under $400,000 per year. Congressional estimates show that the vast majority of Americans will see a tax cutunder Biden's policies and those making less than$75,000 will, on average, owe no federal income taxes this year. Most of Biden's proposed tax cuts target big businesses, multinational corporationsand those earning over $500,000, although his proposed corporate tax increase to 28% would not even fully reverse Trump's cut.
Republicans, who have long espoused widely-discredited claimsthat their tax cuts boost the middle class, have offered Biden a counterproposal, investing less than a third the amount in Biden's plan, entirelyfunded by "user fees" that would primarily hit lower-income workers.Even Sen. Joe Manchin, D-W.Va., who has backed Republican effortsto reduce Biden's proposed corporate tax hike, slammed the GOP proposal for making it "harder on the working person."
"Hell no, don't raise them!" Manchin told reporters last week, warning that commuters would be hit the hardest.
The Republican plan calls for about $568 billion in spending that would be paid for with fees like gas and mileage taxes, according to Sen. Mitt Romney, R-Utah.
"My own view is that the pay-for ought to come from people who are using it," Romney told reporterslast month.
But it's unclear how much new funding the bill actually includes, as opposedto funds it seeks to reallocate from other appropriations and alsounclear how much money these user fees can actually raise, Michael Graetz, a Columbia tax law professor who served as a top Treasury Department official, said in an interview with Salon. A Washington Postanalysis found that the GOP plan may only include about $189 billion in actual new funding.
Graetz said he was skeptical of the Republican proposal because Republicans have opposed gas tax increases for nearly three decades.
"You have to at least question how sincere they are about user charges," said Graetz, the author of "The Wolf at the Door: The Menace of Economic Insecurity and How to Fight It," adding that it would take a long time to raise significant revenues from these fees and they are unlikely to raise significant amounts of money.
While user charges, like tolls to pay for bridge and highway construction, are common and sensible, infrastructure projects are "longterm investments that you can't pay for all at once without overburdening people and then having a project that's not completed," Graetz explained.
"I'm not sure if this is a serious proposal," Graetz added of the GOP plan. "Democrats are likely to oppose it because user charges will affect everyone who drives across the road or the bridge. And to the extent that it increases transportation costs on railroads or airplanes or automobiles, anyone who uses that infrastructure will pay for it. So it's not limited to people of any particular amount of income, andthey pass it on to consumers in the form of higher prices. Consumers will pay for it. The distributional aspects of Biden's plan certainly appears to be significantly more progressive."
It's not clear what the extent of these user fees will be, stressed Zach Liscow, a tax policy expert at Yale Law School, and some can be used to "discourage behavior that is bad for society," such asoverly congested highways.
"However, there is little indication that Republicans intend to target problems like excessive traffic and pollution," he told Salon. "In any case, even if user fees do target social problems, if doing so disproportionately targets the pocketbooks of lower-income families, that needs to be traded off with whatever benefits come from targeting the social problems."
Since corporations stand to benefit the most from improved infrastructure, "it is arguably fair to tax them to pay for it," Liscow said. "Unless the user fees target activities that are bad for society or policymakers actually want to target lower-income parties with their revenue collection, there aren't good reasons to use user fees instead of corporate taxes to fund infrastructure."
Biden defended his proposals on Monday, emphasizing that this spending will go toward investments in fixing bridges and roads, clean waterand green energy, as well as other programs that would fund child care, free community collegeand aid to families.
"I think it's about time we start giving tax breaks and tax credits to working-class families and middle-class families instead of just the very wealthy," Biden said, adding that "trickle-down economics has never worked. For too long, we've added an economy that gives every break in the world to the folks who need it the least. It's time to grow the economy from the bottom up and the middle out. We can choose to invest in our students. We can choose an economy of rewards work, not just wealth."
Read more:
- NBC's Chuck Todd Explains Why He's Changed How He Reports On Republicans - The Daily Wire [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- 'Red State Blues' Explores What Bolsters And Tempers Republicans' Success - Texas Standard [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- In leaked audio, a top Trump adviser said the Republican party has 'traditionally' relied on voter suppression - Business Insider [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- 'A rocky road': Wisconsin Republicans recap the first year of split control under Gov. Tony Evers - Madison.com [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- Iowa swung fiercely to Trump. Will it swing back in 2020? - Minneapolis Star Tribune [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- In the Time of Trump, Are Republicans Crazies or Cowards? - The Daily Beast [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- How a 'legislative terrorist' conquered the Republican Party - The Week [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- Republican group to run ads in target states demanding testimony from White House officials in Trump impeachment trial | TheHill - The Hill [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- Decade in review: Justice Antonin Scalias death and the Republican delay in filling the seat - SCOTUSblog [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- Republicans Are Fiscally Reckless and Irresponsible - Washington Monthly [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- Fear and Loyalty: How Donald Trump Took Over the Republican Party - The New York Times [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- Blumenthal: Five to 10 Republicans have 'severe misgivings' about McConnell strategy | TheHill - The Hill [Last Updated On: December 27th, 2019] [Originally Added On: December 27th, 2019]
- House Republicans and Democratic governor feud over the Louisiana budget, again - The Advocate [Last Updated On: December 28th, 2019] [Originally Added On: December 28th, 2019]
- Republican governors grapple with whether to accept refugees - Press Herald [Last Updated On: December 28th, 2019] [Originally Added On: December 28th, 2019]
- Why Shouldnt Pelosi Try to Strong-Arm the Republicans? It Has Worked for Decades. | News and Politics - PJ Media [Last Updated On: December 28th, 2019] [Originally Added On: December 28th, 2019]
- Outmaneuvering the Republicans (letter) | Letters To The Editor - LancasterOnline [Last Updated On: December 28th, 2019] [Originally Added On: December 28th, 2019]
- Wisconsin Democrats say Republicans have made thwarting Gov. Tony Evers their priority - Madison.com [Last Updated On: December 28th, 2019] [Originally Added On: December 28th, 2019]
- Republicans are leaving the House at a record pace. Why? - CBS News [Last Updated On: December 28th, 2019] [Originally Added On: December 28th, 2019]
- ANOTHER OPINION: Trump completes takeover of Republican Party - Goshen News [Last Updated On: December 28th, 2019] [Originally Added On: December 28th, 2019]
- For evangelicals, climate change causes a split between young and old that could hurt Republicans - The Boston Globe [Last Updated On: December 28th, 2019] [Originally Added On: December 28th, 2019]
- Eric Hubner: Republican senators should stand up to the appeasement of Trump - Salt Lake Tribune [Last Updated On: December 28th, 2019] [Originally Added On: December 28th, 2019]
- Brent Budowsky: The patriotic duty of Senate Republicans | TheHill - The Hill [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- 'Too personally invested': Republicans demand FISA court explain why Obama official picked to oversee reforms - Washington Examiner [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Never Trumpers flame out - POLITICO [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Republican leader who sent their child to conversion therapy says child abuse makes people gay - LGBTQ Nation [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- As Democrats resurrect carbon bill, Republicans leave all options on the table including another walkout - malheurenterprise.com [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Pen-t up anger: Republicans pounce on Pelosi over ceremonial writing tools - The Guardian [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Franklin Republican wants to make it a crime to burn symbol of liberty - The Union Leader [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Republicans vote down teacher pay boost plan - The Herald [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- How Tim Kaine convinced Republicans to vote to rein in Trump's war powers - POLITICO [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Republicans face reckoning on impeachment witnesses - POLITICO [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Matt Gaetz Is in an Internecine Beef With Another Florida Republican - Esquire.com [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Rand Paul on Senate trial: 'I don't think any Republicans are going to vote for impeachment' - msnNOW [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- 'The New York Times' Is Enabling Republican Lies - The Nation [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Trump and Republicans are courting Florida's Latinos. Democrats in the state are worried. - NBC News [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Republicans face internal brawl over impeachment witnesses | TheHill - The Hill [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Rand Paul threatens fellow Republicans with explosive witness votes - POLITICO [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- The Real Risks of Republicans Burying Their Heads in the Sand - The New York Times [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Abortion laws give Republican politicians what they crave control | TheHill - The Hill [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Republicans will pay on Election Day for politicizing Trump's impeachment | TheHill - The Hill [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- Nationalist 'antics' or the future of the GOP? College Republicans are at war - USA TODAY [Last Updated On: January 18th, 2020] [Originally Added On: January 18th, 2020]
- A Few Republicans And The American Public: Democrats Target Their Impeachment Message - NPR [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- Senate Republicans Are Bathed in Shame - The New York Times [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- There Were No 'Moderate Republicans' in the Senate on Tuesday. Only Collaborators. - Esquire [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- The Values We Share (or Why I Am A Republican) - The Bulwark [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- Republicans are schooling us in the definition of 'chutzpah' - Cape Cod Times [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- Grieder: Dan Crenshaw is right to say that Republicans cant afford to ignore climate change - Houston Chronicle [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- This Former Co-Host of 'The View' Says She Was Told To 'Act Republican' - Showbiz Cheat Sheet [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- Sorry, But Democrats Have to Compromise and Republicans Don't - Mother Jones [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- Flake: Republicans don't speak out against Trump 'because they want to keep their jobs' | TheHill - The Hill [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- Republicans upping investment in Florida and other key battlegrounds - Florida Politics [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- No Republican in Congress Is Thinking Past Tomorrow's Lunch Menu - Esquire [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- DCCC to run ads tying 11 House Republicans to Trump remarks on entitlements | TheHill - The Hill [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- How Republicans made millions on the 2017 tax cuts they pushed through Congress - Vox.com [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- Republican Senators May Save Trump, but Trump has Already F*cked Them - The Daily Beast [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- Why Democrats Still Have to Appeal to the Center, but Republicans Dont - The New York Times [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- Why Hillary Clinton is the world's greatest gift to Republicans - New York Post [Last Updated On: January 25th, 2020] [Originally Added On: January 25th, 2020]
- Buttigieg on plan to win over Republicans: 'I'm not trying to trick anybody' - Washington Examiner [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Readers respond: Republicans must do the right thing - oregonlive.com [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Commentary: Note To Republicans- When You Are Innocent, Witnesses And Documents Should Be Welcomed - KRWG [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Equality Should Not Be A Partisan Issue: Where Do Key Republicans Stand On It? - InsiderNJ [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Republican senate candidates disagree about whether a border wall is the solution to illegal immigration - Chicago Daily Herald [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Kobe Bryant: Reaction to his tragic death; career highlights - Waterbury Republican American [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Democrats step up pressure over witnesses after Bolton bombshell | TheHill - The Hill [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Republicans grew our economy - and in the process, turned Arizona purple - AZCentral [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Senate Republicans have final chance to stand for country - The Daily Herald [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Managing an unruly world far and near: Q&A with Republican congressional candidate Todd Kent - Waco Tribune-Herald [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- After Trumps Acquittal, It Will Only Get Worse for Republicans - Yahoo News [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Senate Republicans push back on calls for more impeachment witnesses - POLITICO [Last Updated On: January 26th, 2020] [Originally Added On: January 26th, 2020]
- Trump Boasts That Republican Lawmakers Have Turned Him Into A King - PoliticusUSA [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]
- Meet the Candidate She's aiming to be the next Republican Jewish woman in Congress - Jewish Insider [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]
- 'What Have We Become?' New Republican Video Rips Trump Revenge On Lt. Col. Vindman - HuffPost [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]
- Why Democrats And Republicans May Make The Best Teammates At Work - Forbes [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]
- Anderson: Why the Democrats - and Republicans - are doomed - The Ledger [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]
- Democrats and Republicans agree on this: Social Security and Medicare need help and soon - MarketWatch [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]
- Trump struggles to win over Republicans on immigration - POLITICO [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]
- The Democratic Party Is Collapsing. Just Like the Republican Party Did. - The Bulwark [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]
- Republicans Think President Trump Had Every Right To Fire Government Officials Who Testified Against Him - BuzzFeed News [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]
- With Republicans, the best is yet to come - Youngstown Vindicator [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]
- Washington-Based Republican Partnership Supports Non-Sitting Candidate In Iowa Race For First Time - 1380 KCIM [Last Updated On: February 16th, 2020] [Originally Added On: February 16th, 2020]