Democrats For “Revenue Neutral” Corporate Tax Reform, Before They Were Against It
Flip-Flop on Agreement with Corporations for More Stimulus Spending
WASHINGTON – Today, under the guise of so-called ‘tax reform,’ President Obama unveiled a new “tax and spend” proposal, which is a flip flop from his and other leading Democrats’ previous position of a revenue-neutral corporate tax overhaul. Senate Finance Committee Ranking Member Orrin Hatch (R-Utah) supports comprehensive revenue neutral tax reform that would ensure that America’s burdensome tax code is fixed for everyone – not just corporations – and in a manner where revenues generated through a tax overhaul aren’t used to finance more government spending.
THAT WAS THEN…
- “Because the President favors adopting these measures as part of revenue-neutral business tax reform that would also cut the corporate rate and comprehensively reform tax subsidies, the Budget does not count the net savings from the business tax proposals described below toward its deficit reduction targets.” (President’s Fiscal Year 2014 Budget, p. 19 of “Strengthening the Middle Class and Making America a Magnet for Jobs”)
- Senator Chuck Schumer (D-New York) said in a Fall 2012 speech, “Some on the left have suggested corporate tax reform could be a source for new revenue, but I disagree.” (Senator Chuck Schumer, Speech before the National Press Club, October 9, 2012)
- Then Treasury Secretary Tim Geithner, ‘“I’m actually quite optimistic that we’re going to be able to start that process with a very strong pro-investment, pro-growth, pro-competitiveness proposal,’ Geithner said, adding that the plan would be revenue-neutral.” (The Hill, “Geithner confirms administration is crafting plan for corporate tax reform,” 4/5/11)
…THIS IS NOW.
- “Obama today altered his longstanding support for revenue-neutral changes to business taxation. He said one-time revenue from taxing accumulated overseas earnings or changing depreciation schedules should be spent instead of being used to reduce tax rates.” (Bloomberg News, 7/30/13)
- “The new twist is that in exchange for his support for a corporate tax reduction, [the President] wants money generated by the tax overhaul to be used on a mix of proposals such as funding infrastructure projects like repairing roads and bridges, improving education at community colleges, and promoting manufacturing, senior administration officials said.” (Reuters, 7/30/13)