S.C. Rep. Tim Scott introduces bill to slash corporate taxes
Last week, U.S. Rep. Tim Scott (R-S.C.) introduced H.R. 937, which was submitted with the curious name, “The Rising Tides Act of 2011.” The innocuous-sounding bill could prove a good deal more incendiary than its name suggests.
Scott’s bill would slash the corporate income tax rate for the highest-earning companies in the country. Corporate taxes already comprise a smaller portion of federal tax revenue than they have since records began in 1950.
Scott’s bill would change language in current Internal Revenue Code, replacing the rate of 35 percent that appears in a tax code subsection on “corporations in general” with one of 23 percent. Currently, the rate of 35 percent applies to the top corporate tax bracket. Businesses making less than $10 million a year would be unaffected by the legislation, but businesses making more than that would reap huge benefits.
Scott prides himself on being a friend of business (PDF). Indeed, the largest single contributor to his successful 2010 campaign was Club for Growth. Club for Growth is a tax-exempt conservative organization dedicated to “limited government and economic freedom.” Like many such organizations, it has ties to the Koch brothers: Howard Rich, a developer on the Club for Growth’s board, also serves on the Board of Directors of the Cato Institute alongside David Koch.
Although some of its corporate partners would benefit hugely from the cuts, Koch Industries itself may have little to gain directly, because, it has been reported, it pays no corporate income tax. When an Obama official mentioned this last August, the only response from Koch Industries was loudly-professed outrage that the administration seemingly knew confidential information about its tax status.