Judiciary Committee Republicans Defend Corporate Tax Loopholes
Washington, DC, June 3, 2011
Tags: Border Security
Today, Judiciary Committee Ranking Member John Conyers, Jr. (D-Mich.) opposed the Republican balanced budget proposal that would enshrine special interest tax loopholes into the Constitution.
In support of Congressman Mel Watt’s (D-N.C.) amendment to eliminate the protection of special interest tax breaks, Conyers noted:
The Republican proposal would take more than $1 trillion in tax breaks for favored industries and millionaires off the table before the discussion of budget cuts would even begin. Meanwhile, Social Security, Medicare, support for our veterans and children would be decimated.
The Republicans pushed forward a vote for Congress to be able to enact the narrowest special interest tax breaks without a public vote, while requiring supermajorities, to make it harder in each House, to undo it.
Conyers also supported Congressman Jerrold Nadler’s (D-N.Y.) amendment to allow debate and a traditional majority vote on the special tax breaks enjoyed by gas and oil companies earning more than 10 billion dollars annually.
These and other companies do not need more tax breaks. According to a recently released study from Citizens for Tax Justice, the following twelve companies paid an effective tax rate of negative 1.5% on $171 billion in profits from 2008 - 2010, reaping $62.4 billion in tax subsidies: American Electric Power, Boeing, Dupont, Exxon Mobil, FedEx, General Electric, Honeywell International, IBM, United Technologies, Verizon Communications, Wells Fargo and Yahoo.
Among other things, Republicans also voted down an amendment by Rep. Bobby Scott (D-Va.) to exempt a revenue-raising bill from the three-fifths majority requirement, and an amendment by Congresswoman Jackson-Lee (D-Texas) waiving the provisions of the proposal for any fiscal year in which the United States is engaged in any use of military force.
Today, Republicans chose once again to preserve special tax privileges for the most profitable industries on earth, while eviscerating Social Security, Medicaid, and support for veterans and children.