Congressional Dems criticize companies paying execs more than taxes

A coalition of congressional Democrats and Independent Senator Bernie Sanders has called attention to 35 profitable U.S. corporations that have paid their executives more than they contributed in federal income taxes over recent years. This issue has been linked to the 2017 Tax Cuts and Jobs Act, which significantly reduced corporate tax rates. The lawmakers highlighted that these companies collectively earned $277 billion in domestic profits while paying only $9.5 billion in federal taxes. Notably, Tesla was cited as a prime example, having reported $4.4 billion in profits without paying any federal income tax during the specified period. The lawmakers, including Senators Elizabeth Warren and Sheldon Whitehouse, along with Representative Greg Casar, sent letters to these corporations demanding answers regarding their tax contributions and lobbying expenditures to maintain the tax cuts. They emphasized that the tax cuts have disproportionately benefited corporate executives and wealthy shareholders, while the majority of workers have seen minimal wage increases. The letters were released following a report indicating a dramatic rise in CEO compensation, which has surged by over 1,000% since 1978, contrasting sharply with the mere 24% increase in typical worker wages. The 2017 tax law has also led to increased stock buybacks, further enriching corporate executives. In response, Democrats are advocating for reforms to the tax code, including raising the corporate tax rate and closing loopholes, to ensure that corporations contribute fairly to federal revenues, especially as Congress prepares to address these corporate tax policies in the coming year.