Corporate tax rates opposed out of greed
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Editor,
Several recent letters have questioned Greg Hertz’s guest column concerning corporate tax laws. Simply put, corporate taxes are taxes that the federal government imposes on profits made by corporations.
In 2017, under then President Trump, the corporate rate dropped from 35% to 21%. Since this tax is the third largest source of federal revenue, it of course impacts the Federal budget. In 2017 corporate taxes generated $338 billion and 2019 it was $230 billion, 6.6% of the total federal revenue; down from 9%.
No one likes to pay taxes but society reaps the benefits that our government provides, including our military, the interstate highway system, Social Security and Medicare. If corporations contribute less, you and I must pick up the slack. Remember, the TCJA tax breaks for corporations were permanent but the individual tax breaks expire in 2025.
President Biden is simply trying to increase the corporate tax rate to 28%; much lower than the 35% rate in 2017. This slight increase will not cause corporations to hire less people or pass on huge increases in product to the general public. So why are Greg Hertz and the Republican party so opposed to this slight increase? Greed, pure and simple.
Gerry Browning
Polson
