Charlotte, NC
Informing and Connecting Engaged Citizens
April 24, 2014
Center for Effective Government Report: Shrinking Corporate Tax Base is Wreaking Havoc on State Budgets

A new report published today by Center for Effective Government and National People’s Action uncovers how the shrinking corporate tax base is driving critical budget shortfalls and service cuts at the state and federal level. The report outlines exactly how much revenue has been lost due to a precipitous decline in corporate income tax rates and an explosion of loopholes. The report shows that since the recession, corporate income tax revenues have shrunk considerably, despite soaring profits, leaving individuals to pick up the slack.

"Millions of Americans have yet to see any economic recovery,” said George Goehl, Executive Director of National People’s Action. “They're struggling to find jobs, make ends meet, and provide for their families. This report shows that the revenue needed for recovery didn't just vanish, it was siphoned off by corporations who refuse to pay their fair share."

Key takeaways from the study include:

  • Corporations are paying less in income taxes than they did at the beginning of the recession, leading to vast service cuts.
  • If corporations paid taxes at Eisenhower administration levels, they would have paid $957 billion last year, $683 billion more than they did; if they had paid taxes at Richard Nixon era levels, they would have paid $738 billion in 2013, $464 billion more than they actually paid.
  • For context: $200 billion in additional corporate revenue could create 3 million jobs, and just $36 billion could fund 667,000 school teachers, first responders, librarians, highway crews, caretakers of public parks, and other state and city workers.
See link to full article below.
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