WASHINGTON (Gray DC) -- “You are getting ripped off," Sen. Brian Schatz (D-HI) said.
Hawaii Senator Brian Schatz teamed with Vermont Senator Bernie Sanders (I-VT) in calling out big money-making businesses.
A report by the Institute of Taxation and Economic Policy shows 100 large corporations paid zero or less federal income taxes at least once in the past eight years. 258 of them paid an average tax rate of 21.2%, that’s well below corporate tax rate of 35%.
The senators are introducing a bill to stop it.
“If there’s one message from the last election cycle, left right and center from the coast to the mid west all the way to Hawaii and Alaska and every where in between is that this system is not fair," Schatz said.
Schatz and Sanders said their bill would close loopholes and make corporations pay back the taxes they already owe on offshore profits.
Sanders built his presidential campaign around holding big companies accountable for deceiving the government. He wants to hold them to a higher standard in the Senate.
“The truth is that we have a rigged tax code that that has essentially legalized tax dodging for large corporations," Sanders added.
Sanders said he believes the bill will raise at least 1 trillion dollars in new revenue over the next decade. But others say it will have a very predictable outcome.
“Companies will become less competitive and they’ll either leave or they’ll be bought out by foreign competitors," David Burton, Senior Fellow in Economic Policy at the Heritage Foundation said.
David Burton is an economic policy expert with the Heritage Foundation
He said the bill would hurt jobs and decrease wages. He said the House Republican tax plan called, 'The Better Way,' is the way to go.
“We need to reduce the corporate tax rate and not punish businesses who are doing business in the United States or investing or building factories in the United States," he added.
Burton believes the bill has zero chance of passing. Mostly because Republicans hold the majority in Congress. Sanders and Schatz continue to push for support from their colleagues.
The bill now goes to the Senate Finance Committee for consideration.