While you are forgiving PPP loans for millionaires and large corporations, what does that say to the small business owners who struggled to repay their loans or operated without financial assistance? What kind of lesson are you teaching businesses when the government forgives significant debts for the wealthiest entities? Please tell me why my tax dollars and yours should be spent to forgive PPP loans for multimillion-dollar corporations instead of being invested in critical needs like rebuilding the infrastructure of this country, for example.
Another critical factor in balancing the budget is ensuring a sustainable tax policy that generates sufficient revenue. The Tax Cuts and Jobs Act of 2017 made this much harder by significantly reducing corporate and individual tax rates. On the individual side, the law lowered tax rates across all brackets, nearly doubled the standard deduction, and capped state and local tax (SALT) deductions at $10,000, disproportionately benefiting higher-income earners while limiting deductions for residents of high-tax states. Although proponents argued that these cuts would boost economic growth, they largely shifted the burden of funding government programs without producing sufficient revenue offsets. Combined with a reduction in the corporate tax rate from 35% to 21%, these changes added an estimated $1.9 trillion to the deficit over a decade, further straining the ability to fund essential priorities like infrastructure and education.
Meanwhile, billionaires are paying less in taxes than ever before, both in percentage terms and in overall contributions relative to their wealth. Loopholes in the tax code, lower capital gains tax rates, and the reduced corporate tax rate allow many ultra-wealthy individuals and large corporations to minimize their tax liabilities. Recent studies have shown that some billionaires effectively pay a lower tax rate than middle-class Americans when factoring in capital gains and other tax advantages. This growing disparity in tax responsibility undermines fiscal equity, reduces government revenue, and makes it harder to address the national deficit or invest in critical public services. Closing these loopholes and ensuring that the wealthiest contribute their fair share is essential for a sustainable fiscal future.
You’ll say well Biden was president, but Congress controls the purse. Civics 101.
The tax code did not significantly change during the Biden administration due to several factors. First, congressional dynamics played a significant role. While President Biden proposed tax reforms to increase taxes on corporations and the wealthy, these changes required approval from Congress. The evenly divided Senate and narrow Democratic majority in the House during the early part of his term made passing comprehensive tax reform challenging. The Senate filibuster, requiring a 60-vote threshold for most legislation, further limited the ability to enact sweeping changes without bipartisan support. While budget reconciliation allowed some fiscal measures to pass with a simple majority, its scope was limited, and other priorities often took precedence.
Additionally, economic considerations influenced legislative priorities. With the economy facing challenges such as inflation, supply chain disruptions, and COVID-19 recovery efforts, some lawmakers were hesitant to raise taxes, fearing it could hinder economic growth during a fragile period. The administration also focused on other legislative priorities, such as infrastructure investments and pandemic relief packages, which competed with tax reform efforts.
Political realities further complicated the situation. Tax reforms targeting corporations and high-income individuals faced strong opposition from powerful lobbying groups and lawmakers aligned with business interests, delaying or blocking proposed changes. While the administration introduced measures to improve IRS enforcement and close some tax loopholes, structural changes to the tax code were constrained by these combined factors.
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