Self-penned “democratic-socialist” Sen. Bernie Sanders of Vermont released a new plan to stop corporations in the United States from avoiding paying taxes based on their revenue.
The Corporate Tax Dodging Prevention Act of 2015 would prohibit American companies that do business overseas from not paying a share of their profits to the federal government. According to the Senator’s legislation, “Current law allows American corporations to defer paying U.S. income taxes on profits of their offshore subsidiaries until those profits are “repatriated” (officially brought to the U.S.).”
The legislation would also close loopholes that allow U.S. corporations working in international nations to only be taxed by foreign nations, since the businesses are working and employing in the foreign nation. Sen. Sanders' legislation would allow for double-taxation on profits, one tax for foreign nations and one tax for the United States.
During a news conference where he revealed his new idea, Sanders noted the rising national debt and continued rhetoric from the past on American corporations avoiding taxes.
“At a time when we have a $18.2 trillion national debt and an unsustainable federal deficit, at a time when many of the largest corporations in America are paying no federal income taxes, and at a time when corporate profits are at an all-time high, it is past time for corporate America to pay their fair share in taxes so that we can create the millions of jobs this country needs,” Sanders said.
However, it should be noted that “at 35%, the United States has the highest nominal top corporate tax rate in any of the world’s developed economies,” the Los Angeles Times reported in 2012.
Sanders has advocated for higher taxes throughout much of his career in politics. Earlier this year, he proposed an idea to raise taxes on the wealthiest Americans to pay for Social Security.
In March, he proposed the “war tax,” that would have added a new tax on millionaires to pay for the wars in Iraq and Afghanistan, which Sanders blamed on the Republican Party.
“The Republicans took us into protracted wars in Afghanistan and Iraq – and ran up our national debt by trillions because they chose not to pay for those wars. Instead, they put the cost of those wars on our national credit card,” Sanders said during his proposal.
The veteran senator is also considering a run for the White House in 2016. While Hillary Clinton remains the favorite to win the Democratic nomination, Sanders said he would announce whether or not he will challenge her in a primary by April 30.
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