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Senate Democrat's Tax Reform Hypocrisy

- November 15, 2017

Senate Democrats Have Supported Key Components Of The Senate Tax Relief Bill In The Past, Which They Now Conveniently Oppose…

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TOP TAKEAWAYS

  • The Senate tax relief bill nearly doubles the standard deduction, and increases the Child Tax Credit from $1,000 to $1,650-changes that could put thousands of dollars into the pockets of lower and middle income families.
    • Increasing the Child Tax Credit has received widespread support from Senate Democrats, including: Sen. Debbie Stabenow, Sen. Bill Nelson, Sen. Bob Casey, Sen. Mazie Hirono, Sen. Tammy Duckworth, and Sen. Sherrod Brown.
  • The Senate tax relief bill eliminates the complex, unfair Alternative Minimum Tax (AMT), a tax that, contrary to its intended purpose, has primarily burdened American households making less than $200,000 a year.
    • Many Democrats have spoken out against the AMT, including: Sen. Tammy Duckworth, Sen. Claire McCaskill, Sen. Bill Nelson, Sen. Debbie Stabenow, Sen. Sherrod Brown, Sen. Ron Wyden, and Sen Ben Cardin.
  • The Senate tax relief bill would lower the corporate tax rate from 35 percent, one of the highest in the world, to 20 percent with the aim of making U.S. businesses more competitive.
    • Several Senate Democrats have supported lowering the corporate tax, including: Sen. Michael Bennet, Sen. Amy Klobuchar, Sen. Heidi Heitkamp, Sen. Ron Wyden, Sen. Claire McCaskill, and Sen. Mark Warner.
  • The Senate tax relief bill would transition the U.S. to a territorial tax system, which will make American businesses more competitive globally.
    • Numerous Democrats have expressed interest in moving towards a territorial tax system, including: Sen. Chuck Schumer, Sen. Dick Durbin, Sen. Mark Warner, Sen. Thomas Carper, and Sen. Ben Cardin.

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THE SENATE TAX RELIEF BILL SIGNIFICANTLY INCREASES THE STANDARD DEDUCTION AND CHILD TAX CREDIT, PROPOSALS DEMOCRATS HAVE LONG SUPPORTED

The Senate Tax Relief Bill As Proposed Would Roughly Double The Standard Deduction, And Increase The Child Tax Credit By $650 Per Child

Senate Republicans Released Their Own Tax Reform Bill Thursday, November 9, 2017. "Senate Republicans released their own version of a tax plan Thursday, and it varies just enough from the House's bill to set the two chambers up for a dramatic showdown over tax policy in upcoming weeks." (Lauren Fox, "Senate Republicans Unveil Their Own Tax Plan," CNN , 11/10/17)

The Senate Tax Relief Bill Would "Significantly" Raise The Existing Standard Deduction For Single Filers From $6,350 To $12,000, And From $12,700 To $24,000 For Married Couples. "Like the House bill, Senate Republicans would significantly raise today's standard deduction. In the Senate bill, the deduction for singles increases to $12,000 from $6,350 currently; and it raises it for married couples filing jointly to $24,000 from $12,700." (Jeanne Sahadi, "What's In The Senate Republicans' Tax Bill," CNN , 11/10/17)

  • Increasing The Standard Deduction Could "Potentially Pu[t] Thousands Of Dollars Each Year Into The Pockets Of Tens Of Millions Of Americans." "President Trump on Wednesday plans to call for a significant increase in the standard deduction people can claim on their tax returns, potentially putting thousands of dollars each year into the pockets of tens of millions of Americans, according to two people briefed on the plan." (Damian Paletta and Steven Mufson, "Trump To Propose Large Increase In Deductions Americans Can Claim On Their Taxes," The Washington Post , 4/25/17)
  • The Approximately 70 Percent Of Americans Who Currently Take The Standard Deduction, Mostly Low And Moderate Income Taxpayers, Would Stand To Benefit From An Increase In The Standard Deduction. "About 70% of Americans, mostly low- to moderate-income, currently take the standard deduction and would benefit, Viard says. Many of the remaining 30% who itemize, largely higher income households, would likely switch to the standard deduction, leaving only about 5% itemizing, he says." (Paul Davidson, "How Trump's Tax Plan Would Affect Households," USA Today , 4/26/17)

The Senate Tax Relief Bill Would Increase The Child Credit From $1,000 Per Child To $1,650 Per Child And Expand The Credit To All Children Under 18. "The Senate GOP bill increases the child tax credit to $1,650 per child, up from $1,000 today, and slightly above the $1,600 proposed in the House bill. Senate GOP tax writers would make the credit available for any children under 18, up from today's under-17 age limit." (Jeanne Sahadi, "What's In The Senate Republicans' Tax Bill," CNN , 11/10/17)

  • Research From The Center On Budget And Policy Priorities Suggests The Child Tax Credit Leads To Improved Educational Outcomes For Young Children Living In Low-Income Households. "Moreover, research suggests that income from the EITC and CTC leads to improved educational outcomes for young children in low-income households. For each $1,000 increase in annual income over two to five years, children's school performance improves on a variety of measures, including academic test scores. A credit that's worth about $3,000 (in 2005 dollars) during a child's early years may boost his or her achievement by the equivalent of about two extra months of schooling." (Chuck Marr, Chye-Ching Huang, Arloc Sherman, and Brandon Debot, "EITC And Child Tax Credit Promote Work, Reduce Poverty, And Support Children's Development, Research Finds," Center On Budget And Policy Priorities , 10/1/15)
  • The Child Tax Credit Combined With Other Refundable Credits Lifted 8.2 Million Americans Out Of Poverty In 2016 According To The U.S. Census Bureau Report On Poverty. "The CTC and EITC have also done exactly what they were intended to do: lift millions of people out of poverty. The latest report on poverty in America from the U.S. Census Bureau came out last week. It showed that refundable tax credits lifted 8.2 million Americans out of poverty in 2016, making the credits the second-best poverty reduction program in the United States after only Social Security." (Heather Long, "The Simple Way To Tell Whether Trump's Tax Plan Is For The 'Little Guy' Or The 1 Percent," The Washington Post , 9/19/17)

In The Past, Many Senate Democrats, Including A Number On The Senate Finance Committee, Have Favored Increasing The Standard Deduction And The Child Tax Credit

In 2003, Senator Debbie Stabenow (D-MI) Said That Democrats And Republicans Should "Come Together" On Things Like Increasing The Child Tax Credit. SEN. DEBBIE STABENOW (D-MI): "We can come together on things such as eliminating the marriage tax penalty, and increasing the Child Credit, and helping small businesses." (Sen. Debbie Stabenow, Remarks On The Senate Floor , Washington D.C., 1/14/03)

Click To Watch (2:56:23-2:56:33)

In 2007, Senator Ron Wyden Advocated Increasing The Standard Deduction And Ending "Favouritism For Itemizers." SEN. RON WYDEN (D-OR): "On the individual side, the fair flat tax ends favoritism for itemizers while improving deductions across the board. The standard deduction would be tripled for single filers from $5,000 to $15,000 and raised from $10,000 to $30,000 for married couples. As a result, Mr. President, the vast majority of Americans would be better off claiming the standard deduction than having to itemize their deductions, so filing will be simplified for all Americans." (Sen. Ron Wyden, Remarks On The Senate Floor , Washignton, D.C., 10/24/07)

Click To Watch (5:34:02-5:34:32)

In 2010, Sen. Bill Nelson (D-FL) Supported Increasing The Child Tax Credit And Raising The Standard Deduction. SEN. BILL NELSON (D-FL): "And it is my intention that as we vote in just a few hours that I am going to vote for this package. Now, it does provide relief that is critical for middle-class families. For example, for a family making $63,000 a year, that means if we didn't pass this bill and the tax, existing tax law expired, then that income level of family earning $63,000, their taxes would go up by $2,000. What this bill does is prevents that. These middle-class tax cuts are extended in this legislation for a period of two years, and that includes the 10% income tax bracket, the $1,000 child tax credit, an increase in the standard deduction for married couples, an expansion of the 50% tax bracket for married couples." (Sen. Bill Nelson, Remarks On The Senate Floor , Washington, D.C., 12/15/10)

Click To Watch (15:32-16:45)

In 2013, Sen. Bob Casey (D-PA) Urged Congress To "Improve And Make Permanent" The Child Tax Credit So Families Can "Improve Their Financial Outlook." "The tax code provides an important policy tool to create financial stability, pull Pennsylvanians out of poverty, provide healthcare and encourage savings for education and retirement. Amid the push to simplify and reform the tax code, we must preserve incentives that families count on to improve their financial outlook. I am particularly concerned with the treatment of the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC) in any effort to reform the tax code. Therefore, I strongly urge you to improve and make permanent both credits." (Press Release, "Casey Submits Recommendation For Fairer, More Efficient Tax Code," Sen. Bob Casey , 07/26/13)

In 2014, Senator Mazie Hirono (D-HI) Called The Child Tax Credit "One Of Our Most Important Programs To Reduce Child Poverty" Because It "Reduces Child Poverty By Approximately One Fifth." SEN. MAZIE HIRONO (D-HI): "The Child Tax Credit is one of our most important programs to reduce child poverty. Tens of millions of families claim the Child Tax Credit each year, more than 35 million families in 2009, both using social security numbers and individual taxpayer identification numbers. According to the Congressional Research Service, the Child Tax Credit reduces child poverty by approximately one fifth." (Sen. Mazie Hirono, Remarks On The Senate Floor , Washington D.C., 1/14/14)

Click To Watch (2:16:17-2:17:01)

In June 2017, Senators Tammy Duckworth (D-IL) And Sherrod Brown (D-OH) Introduced Legislation To Expand The Child Tax Credit. "U.S. Senator Tammy Duckworth (D-IL) joined U.S. Senator Sherrod Brown (D-OH) this week in reintroducing legislation to support working families in Illinois and across the country by expanding two anti-poverty tax credits. The Working Families Tax Relief Act of 2017 will expand eligibility for the Earned Income Tax Credit (EITC) to more Americans while making it easier to claim it, strengthen the Child Tax Credit (CTC) and also help ensure the federal tax system does not force hardworking Americans into poverty." (Press Release, "Duckworth Helps Reintroduce Legislation To Expand Earned Income Tax Credits For Working Families," Sen. Tammy Duckworth , 6/23/17)

THE SENATE TAX RELIEF BILL ENDS THE ALTERNATIVE MINIMUM TAX, WHICH DEMOCRATS IN THE PAST HAVE SUPPORTED DOING

The Senate Tax Relief Bill Eliminates The Alternative Minimum Tax Which Has Been Called "Complex," "Unfair," And No Longer Reflective Of Its Original Purpose

The Senate Tax Relief Bill Repeals The Alternative Minimum Tax. "Repeal the Alternative Minimum Tax: The AMT, originally intended to ensure the richest tax filers pay at least some tax by disallowing many tax breaks." (Jeanne Sahadi, "What's In The Senate Republicans' Tax Bill," CNN , 11/10/17)

Many Tax Experts Agree The Alternative Minimum Tax "No Longer Meets Its Original Purpose," And "Further Complicates An Already Complex Tax Code." "Tax experts often note the AMT no longer meets its original purpose and further complicates an already complex tax code. But it's been kept on the books because it raises a lot of revenue." (Jeanne Sahadi, "What's In The Senate Republicans' Tax Bill," CNN , 11/10/17)

The Majority Of Households Who Pay The Alternative Minimum Tax Make Less Than $200,000 A Year . "While the AMT hits a much larger percentage of million-dollar households, those who earn less than $200,000 actually account for a much larger number of people who actually pay the alternative tax. This year, the Tax Policy Center estimates that 953,000 of households making between $50,000 and $200,000 will have to pay the AMT. By contrast, only 118,000 households making more than $1 million will be hit." (Jeanne Sahadi, "Why The Middle Class Is Still Getting Snared By The 'Wealth Tax,'" CNN , 4/7/15)

In The Past, Democrats Have Repeatedly Expressed A Desire To Eliminate The Alternative Minimum Tax

Sen. Tammy Duckworth (D-IL) Supported Eliminating The Alternative Minimum Tax As Far Back As 2005,. "Duckworth focused mostly on national issues like education, health care and eliminating the alternative minimum tax to help middle class families who've been ensnared by it." (Eric Krol, "Duckworth Has Heady Campaign Start," Chicago Daily Herald, 12/19/05)

  • In 2006, Sen. Duckworth Called The Alternative Minimum Tax "A Surcharge On The Middle Class." "Democrat Tammy Duckworth struck first. Speaking outside a Villa Park post office last week, she called on Congress to fix the alternative minimum tax (AMT), a 'complex and confusing part of the tax code' that she said is, 'in truth, a surcharge on the middle class.'" (John Biemer, "Candidates Clash On Taxes; Duckworth, Roskam Detail Plans," Chicago Tribune, 4/18/06)

In 2007, Sen. Claire McCaskill (D-MO) Asserted That The Alternative Minimum Tax "Was Never Designed To Reach Down Into The Middle Class As It Is And Continues To Do In An Ever-Increasing Way To Cause Even More Stress And Pressure On The Middle Class." SEN CLAIRE MCCASKILL (D-MO): "The AMT was never designed to reach down into the middle class as it is and continues to do in an ever-increasing way to cause even more stress and pressure on the middle class that feels like it is under attack from all sides." (Sen. Claire McCaskill, Remarks On The Senate Floor , Washington, D.C., 3/12/07)

Click To Watch (4:25:17-4:25:47)

In 2007, Sen. Nelson Noted That The Alternative Minimum Tax "Comes Down And It Swoops In A Great Deal Of The Middle Class Which It Was Never Intended To." SEN BILL NELSON (D-FL): "For example, there's a tax that is called alternate minimum tax. It was designed years ago so that people with higher incomes that had huge deductions couldn't offset all of their income, they'd have to pay some tax. So it was designed to go to that higher-income group so that they would still pay their fair share. What's happened, if that alternate minimum tax is not allowed to be applied in the future, what happens is -- and I can't tell you the technicalities -- but the fact is that it comes down and it swoops in a great deal of the middle class which it was never intended to, middle-income people with the result that much higher taxes would be paid in the very income levels that the alternate minimum tax was never designed to hit." (Sen. Bill Nelson, Remarks On The Senate Floor , Washington, D.C., 2/13/07)

Click To Watch (2:22:32-2:23:41)

In 2007, Sen. Debbie Stabenow (D-MI) Stated That The Alternative Minimum Tax Was "Creeping Up And Hitting Middle-Income People." SEN DEBBIE STABENOW (D-MI): "And we start by saying the alternative minimum tax, which is creeping up and hitting middle-income people, should be changed, so it doesn't become the alternative middle-class tax. And we are very focused on making sure the other parts of the tax code that are important to families remain in place and that we in fact are giving middle-class tax cuts." (Sen. Debbie Stabenow, Remarks On The Senate Floor , Washington, D.C., 3/20/07)

Click To Watch (5:39:06-5:46:23)

In 2009, Sen. Brown Called The AMT "Outdated" And Stated That It "Hurt Middle Class Families." " 'It will prevent 800,000 Ohioans from paying the alternative minimum tax, an outdated tax that started off for the right reasons, but it's continuing crept up, and it hurts middle class families.'" (Frank Lewis, "Ohio To Benefit From Stimulus Education Funds," Portsmouth Daily Times, 2/6/09)

In 2010, Sen. Ron Wyden (D-OR) Supported Repealing The AMT. "He backed tax code revisions in 2010 that included repealing the alternative minimum tax and exempting the first 35 percent of capital gains and dividends from taxes." (Micael C. Bender, "Senate Finance Chairman Seek To Extend Breaks," The Daily Herald, 2/16/14)

In 2015, Sen. Ben Cardin (D-MD) Proposed A Tax Plan That Would Eliminate The AMT. "The Cardin plan would abolish the alternative minimum tax (AMT)." (Michael Schuyler, "An Analysis Of Senator Cardin's Progressive Consumption Tax," State News Service, 7/7/15)

LOWERING THE CORPORATE TAX RATE, A CENTERPIECE OF THE SENATE TAX RELIEF BILL, HAS LONG BEEN A POINT OF BIPARTISAN CONSENSUS

The Senate Tax Relief Bill Lowers The Corporate Tax Rate With The Aim Of Making U.S. Businesses Competitive In A Global Economy

The Senate Republican's Bill Would Cut The Corporate Rate To 20 Percent, Effective Starting In 2019. "Cut the corporate rate ... in a year: Like the House bill, the Senate bill would cut the corporate tax rate to 20% from 35% today. But the 20% rate would not take effect until 2019 under the Senate proposal. The delay would reduce the cost of the measure in the first 10 years." (Jeanne Sahadi, "What's In The Senate Republicans' Tax Bill," CNN , 11/10/17)

The Current Statutory U.S. Corporate Tax Rate For Most Major Companies Is 34 To 35 Percent . "34 percent of so much of the taxable income as exceeds $75,000 but does not exceed $10,000,000, and (D) 35 percent of so much of the taxable income as exceeds $10,000,000." (26 U.S.C. § 11)

The U.S. Corporate Tax Rate Is 16.4 Percent Higher Than The Worldwide Average. "The U.S. tax rate is 16.4 percentage points higher than the worldwide average of 22.5 percent and a little more than 9 percentage points higher than the worldwide GDP-weighted average of 29.5 percent. Over the past ten years, the average worldwide tax rate has been declining, pushing the United States farther from the norm." (Kyle Pomerlau, "Corporate Income Tax Rates Around The World, 2016," Tax Foundation , 08/18/16)

Democrats Have Acknowledged In The Past That The United States' High Corporate Tax Rate Puts Businesses At A Disadvantage

In 2011, Sen. Michael Bennet (D-CO) Stated That The United States' High Corporate Tax Rate Is "Sending A Very Uncompetitive Message To The World." SEN. MICHAEL BENNET (D-CO): "Why wouldn't we look at our tax code and regulatory code and ask ourselves, are these things more or less likely to drive innovation in the United States? Are they more or less likely, these aspects of it, to grow our economy and to create jobs and it is clear that we have the highest corporate tax rate in the world now. Used to be second, but Japan either changed theirs or is about to change theirs. And that's sending a very uncompetitive message to the world." (Sen. Michael Bennet, Remarks On The Senate Floor , Washington, D.C., 6/20/11)

Click To Watch (6:18:25-6:18:56)

In 2012, Sen. Amy Klobuchar (D-MN) Said "I Would Hope, As A State That Has Some Incredibly Strong Businesses That Support Doing This, You Could Bring The Corporate Tax Rate Down." SEN. AMY KLOBUCHAR (D-MN): "And it would seem to me that you could to the tax rates at the end of this year because then you could make the kind of deal that you want, and then do some of the closing of the loopholes and subsidies. And I would hope, as a state that has some incredibly strong businesses that support doing this, you could bring the corporate tax rate down and work on the debt in part by closing these loopholes and subsidies." (Sen. Amy Klobuchar, Remarks In A Senate Hearing On The Fiscal Cliff And The Economy ," Washington D.C., 12/6/12)

Click To Watch (1:04:33- 1:04:55)

In 2013, Sen. Heidi Heitkamp (D-ND) Said, "Our Nominal Rate In The Corporate Income Tax Area Is Too High." SEN. HEIDI HEITKAMP (D-ND): "Well, let me tell you, there isn't anyone in this town who hasn't been talking about tax reform as a method forward to close loopholes, to -- to try and do what you can. We all know that our -- our nominal rate in the corporate income tax area is..." JOE KERNEN: "Too high." HEITKAMP: "... too high. I think that the actual practical rate comes down quiet a bit. But the nominal rate sends the wrong message. I think there are some commonality. There are some common ground." (CNBC's "Squawk Box", 10/17/13)

In 2014, Sen. Wyden Said That He Supports A 24 Percent Corporate Tax Rate Because, "In A Tough Global Economy, We Need To Have An Efficient Rate For Business That's Competitive." HOST: "And the corporate rate that you envision?" SEN. RON WYDEN (D-OR): "24%, the lowest on offer, and the reality is that much of what we are seeing today, these inversions for example, which are very much in the news, stem from the fact that our corporate rate is not very efficient. It is putting us right there at the top. And in a tough global economy, we need to have an efficient rate for business that's competitive." (Sen. Ron Wyden, Remarks At The Wall Street Journal CFO Network Conference , Washington, D.C., 6/17/14)

Click To Watch (4:04-4:34)

In 2014, Sen. McCaskill Said "I Think We All Want To Lower Corporate Tax Rates." "'I mean, I think we all want to lower corporate tax rates, but we want to quit letting certain people get goodies so they don't have to pay any taxes.'" (Michael Bersin, "Sen. Claire McCaskill (D): On Robbing Social Programs To Pay For ISIS," Show Me Progress , 10/10/14)

Sen. Mark Warner (D-VA) Said That He Believed One Of The Goals For Tax Reform "Ought To Be Lower Corporate Rates." SEN. MARK WARNER (D-VA): "I believe a goal of our tax code ought to put American business on a competitive basis with other countries around the world. I believe as well to do that -- one of the goals of tax reform ought to be lower corporate rates." (Sen. Mark Warner, Remarks On The Senate Floor , Washington, D.C., 10/13/17)

Click To Watch (4:29:28-4:29:43)

THE SENATE TAX RELIEF BILL SHIFTS THE U.S. TO A TERRITORIAL TAX SYSTEM, A MOVE WHICH DEMOCRATS HAVE SUPPORTED IN THE PAST

The Senate's Tax Relief Bill Will Transition The U.S. To A Territorial Tax System Like Several Countries Already Have

The Senate Tax Relief Bill Changes How U.S. Multinational Corporations Are Taxed: Instead Of The Current Worldwide System That Many Feel Puts American Businesses At A Disadvantage, The Bill Shifts To A Territorial Tax System. "Change how U.S. multinationals are taxed: Today U.S. companies owe Uncle Sam tax on all their profits, regardless of where the income is earned. They're allowed to defer paying U.S. tax on their foreign profits until they bring the money home. Many argue that this 'worldwide' tax system puts American businesses at a disadvantage. That's because most foreign competitors come from countries with territorial tax systems, meaning they don't owe tax to their own governments on income they make offshore. The Senate bill proposes changes to move the U.S. to a territorial system. It also includes a number of anti-abuse provisions to prevent corporations with foreign profits from gaming the system." (Jeanne Sahadi, "What's In The Senate Republicans' Tax Bill," CNN , 11/10/17)

  • Twenty Seven Out Of 34 OECD Member Countries Have Some Form Of Territorial Tax System. "Now, 27 of the 34 OECD member countries employ some form of territoriality, which is up from 17 just a decade ago." (Philip Dittmer, "A Global Perspective On Territorial Taxation," Tax Foundation , 8/10/12)

In The Past, Democrats Have Supported Moving To A Territorial Tax System, With Senate Minority Leader Chuck Schumer Even Introducing Legislation To Do That

In 2011, A Proposal Put Forward By The Gang Of Six, Which Included Senate Minority Whip Sen. Dick Durbin (D-IL), And Sen. Warner, Included A Provision Which Would Have Shifted The U.S. To A Territorial Tax System. "The Finance Committee would be instructed to deliver 'real deficit savings' through simplifying the tax code and raise as much as $1 trillion. It would do this by establishing three tax brackets with rates of 8-12 percent, 14-22 percent and 23-29 percent. It would permanently repeal the $1.7 trillion Alternative Minimum Tax. And it calls for establishing a single corporate tax rate, between 23 percent and 29 percent, and to move to a competitive territorial tax system." (Manu Raju, "Gang Of Six Back From The Brink," Politico , 7/19/11)

In 2013, Sen. Thomas Carper (D-DE) Described A Proposal To Not Only Reduce The Corporate Tax Rate As Low As 25 Percent, But Also To Move Toward A Territorial Tax System As A "Roadmap" That He Hoped Congress Would Follow. SEN. THOMAS CARPER (D-DE): "Our friends Erskine Bowles and Alan Simpson tried to do in leading the deficit commission was to propose in order to bring down the business, corporate tax rate from 35 to about 25% to 28%. They propose reducing significantly, not entirely, but significantly the tax expenditures and argued that if we were to do that we would be more in line with the world and called for moving to a territorial tax system. Let me just ask either of you or both of you just to share with us your views of the approach laid out by the deficit commission which a lot of people said well that was dead on arrival but I think it still has a heartbeat and my hope is that it gives us a roadmap that will still follow." (Sen. Thomas Carper, Remarks During Senate Homeland Security And Governmental Affairs Subcommittee On Investigations Panel On Offshore Profit Sharing , Washington, D.C.,, 5/21/13)

Click To Watch (1:33:26-1:34:20)

In 2015, Senate Minority Leader Chuck Schumer Put Forth A Framework For Tax Reform That Included A Shift To A Territorial Tax System. "The Senate Finance Committee, specifically, Senators Schumer (D-NY) and Portman (R-OH), put forth a framework for international tax reform in 2015. This framework would move the U.S. system to a territorial system, enact a 'patent box,' and enact anti-avoidance measures." (Alan Cole and Kyle Pomerleau, "What Do The Election Results Mean For Tax Policy?," State News Service, 11/9/16)

In 2015, Sen. Cardin Brought Up Transitioning To A Territorial Tax System Because "There's Interest By Both Democrats And Republicans To Take A Look At Reforming The Way That We Tax Foreign Income For American Companies." SEN. BEN CARDIN (D-MD): "That would have to be paid with certain reforms on trying to move United States more to a territorial corporate tax rate. I mention that because I think there's interest by both Democrats and Republicans to take a look at reforming the way that we tax foreign income for American companies, so we can have greater activity here in the United States. These proposals generate a significant amount of revenues, both one time only and permanent revenues. I mention that because we could take a look at the international tax reform proposals and Democrats and Republicans have both submitted proposals on this." (Sen. Ben Cardin, Remarks On The Senate Floor , Washington, D.C., 6/11/15)

Click To Watch (2:41:38-2:42:21)


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