Ro Khanna on Corporations

Flexibility on R&D taxes & startup businesses

• Provide an incorporation tax credit. It's misguided to tax people who are taking the risk of starting new ventures--especially when we offer subsidies to profitable, mature industries. The federal government should give businesses a tax credit to cancel out the variable incorporation fees they accrue in their state.
• Extend research and development tax credits to start-ups. Currently, the R&D tax credit can only be taken against a firm's income tax liability- it's rare for early stage businesses to qualify. I support a new R&D tax credit that allows startups to apply their credit to revenue or payroll taxes.
• Ease tax burdens. The complexity of our tax code disproportionately affects small businesses. I will prioritize reducing excessive small business taxes so that small businesses can continue fueling our economy.

Close loopholes that allow companies to avoid paying taxes

A: Yes. Today, many corporations are incentivized to move profits and facilities offshore. That has to change. We should actively encourage companies to locate here in the U.S. and create a tax structure that rewards them for investing and creating jobs here in America. At the same time, we should close corporate tax loopholes that allow massive Fortune 500 companies to avoid paying taxes at all.

Deregulating banks encourages discriminatory practices.

Congressional Summary:

Economic Growth, Regulatory Relief, and Consumer Protection Act
• TITLE I--IMPROVING CONSUMER ACCESS TO MORTGAGE CREDIT: [for small banks,] requirements are waived if a loan is originated by and retained by the institution
• TITLE II--REGULATORY RELIEF AND PROTECTING CONSUMER ACCESS TO CREDIT: [deregulate] reciprocal deposits [if they] do not exceed 20% of its total liabilities.
• TITLE III--PROTECTIONS FOR VETERANS, CONSUMERS, AND HOMEOWNERS
• TITLE IV--TAILORING REGULATIONS FOR CERTAIN BANK HOLDING COMPANIES
• TITLE V--ENCOURAGING CAPITAL FORMATION
• TITLE VI--PROTECTIONS FOR STUDENT BORROWERS

Supporting press release from Rep. Tom Emmer (R-MN-6): This legislation will foster economic growth by providing relief to Main Street, tailor regulations for better efficacy, and most importantly it will empower individual Americans and give them more opportunity.

Opposing statement on ProPublica.org from Rep. Gregory Meeks (D-NY-5): The bill includes many provisions I support: minority-owned banks and credit unions in underserved communities have legitimate regulatory burden concerns. Unfortunately, exempting mortgage disclosures enacted to detect discriminatory practices will only assist the Trump Administration in its overall effort to curtail important civil rights regulations. I simply cannot vote for any proposal that would help this Administration chip away at laws that I and my colleagues worked so hard to enact and preserve.

Legislative outcome: Passed House 258-159-10 on May 22, 2018(Roll call 216); Passed Senate 67-31-2 on March 14, 2018(Roll call 54); Signed by President Trump. May 24, 2018

Reducing tax rates balloons federal deficit & cuts programs.

Summary by GovTrack.US: (Nov 16, 2017)

For Corporations:
• Reduce the corporate tax rate to 21% from 35%.
• Overseas earnings would be taxed at 15.5% as opposed to the current 35%. This may seem like an enormous reduction, but current law only taxes overseas earnings if they are returned to the US; the 15.5% rate would apply regardless.

For Individuals:
• Lower the rate for the highest earners from 39.6% to 37%.
• Nearly double the standard deductions for individuals but repeal personal exemptions.
• The Affordable Care Act's individual mandate would be repealed.

Case for voting NO by Sierra Club (11/16/17): Republicans have passed a deeply regressive tax plan that will result in painful cuts to core domestic programs, to give billionaires and corporate polluters tax cuts while making American families pay the price. Among the worst provisions: