Democratic Sen. Elizabeth Warren of Massachusetts wants Democrats to raise taxes on large corporations that stash billions of dollars in overseas accounts, even though there is speculation that leading Democrats want to lower taxes on those companies.
“Developed countries are cracking down on the tax dodgers. You saw what just happened with the European Commission ordering Ireland to collect $14 billion in back taxes from Apple,” Warren said, according to The Huffington Post. “Corporations are running out of places to hide, with the G20 and the [Organization for Economic Cooperation and Development] working together to end international tax avoidance. So I just think that argument no longer holds much weight. Instead of bailing out the tax dodgers under the guise of tax reform, Congress should seize this moment to repair our broken tax code.”
But Democratic presidential nominee Hillary Clinton hasn't promised any bold tax increases the large corporations that have more than $2 trillion in overseas accounts and avoid nearly $700 billion in taxes, according to Citizens for Tax Justice.
And Democratic Sen. Chuck Schumer of New York, who has been in negotiations with Republican Speaker Paul Ryan on tax reform, recently told CNBC that Democrats would actually fight for a permanent, lower rate, according to The Intercept.
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Clinton hasn't put forth any specific plans about corporate taxes, other than talking about “broad tax reform.” But Schumer's support for tax cuts is suspected to be the course the Democrats will take, since he'll likely be the Senate majority leader if the Democrats win back control of the Senate in November.
Warren is pushing back against this possibility and pointed to state ballot measures that seek to raise taxes on large businesses, which indicates voters support the idea.
“State ballot initiatives are sending a giant message to Congress that the American people want to see change,” she told The Huffington Post, pointing to Vermont's recent decision to raise taxes on businesses with more than $25 million in revenue. “I think this proposal is a good step to help make the system fairer.”