Raja Krishnamoorthi on Corporations

Shift tax breaks for wealthy financiers to small businesses

"We know that small businesses create the most new jobs in America. Changing our tax policies to support small business growth should be a no-brainer," he added. As president of a successful local small business, and as the former Deputy Illinois Treasurer, Raja has a unique perspective on how government can help or hinder small business growth and development. "My plan would build on the Small Business Act of 2010, which provided tax relief and provided capital for thousands of small businesses," Raja said.

$15B for small business creation incentives

• Doubling the current SBA loan guarantee from the current $5 million up to $10 million. This would help small businesses gain access to financing from banks on better terms than possible today.
• Double the tax credit for new business startup costs from the current $50,000 to $100,000. Additionally, many expenses such as phone bills and mileage incurred by small business owners would be treated as business rather than personal expenses for tax purposes.
• Provide student loan forgiveness for the real job creators: Our program will provide substantial debt relief for almost 100,000 graduates who start businesses.
• Expand the Small Business Innovation Research program: This revenue-neutral proposal would direct a greater share of federal R&D funding to our nation's small businesses that create most of the new jobs in our economy.

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: