Thank you for contacting me about corporate taxes. As a former Navy pilot, combat veteran and retired NASA astronaut, it is an honor to continue my service to our country representing Arizona in the United States Senate. I appreciate you taking the time to share your thoughts on the issues facing our state and our country. Hearing from Arizonans helps me better serve our state, and I hope you will continue to share your perspective and suggestions.

          I have heard from too many Arizonans who are frustrated with tax breaks that reward the wealthiest Americans and large corporations while they struggle to keep up with the rising costs of goods, healthcare and housing. As Arizona’s senator, I am committed to finding solutions that benefit all Arizonans and ensure that big corporations and the wealthy pay their fair share.

          In 2017, former President Trump signed a new tax bill into law which included a major overhaul of tax policy and added over a trillion dollars to the federal debt. In part, this law cut corporate taxes by lowering the top federal corporate income tax rate from 35 percent to 21 percent. Now, as negotiations continue regarding the budget reconciliation package currently being considered by Congress, many have called for it to close the tax breaks created by the 2017 tax law. To this end, the budget reconciliation framework includes proposals to create a tax surcharge of 5 percent on adjusted gross incomes of more than $10 million, with an additional 3 percent surcharge applicable to adjusted gross incomes of more than $25 million. The bill also includes a 15 percent corporate alternative minimum tax for corporations that report more than $1 billion in income annually to their shareholders to prevent massive, profitable corporations from paying effectively nothing in corporate income taxes. It also imposes a 1 percent excise tax on publicly-traded corporate stock buybacks.

          On November 19, 2021, the House of Representatives passed the reconciliation bill with a vote of 220 to 213. The bill has since moved to the Senate for consideration, where negotiations and review by the Parliamentarian to ensure the bill meets Senate rules remain ongoing. As this legislation continues to move through the process, I will keep working to ensure that Arizona’s priorities are met and that the wealthiest Americans and corporations pay their fair share so that these goals can be achieved without raising taxes on middle-class families.

          I believe a strong economy is built from the ground up, ensuring that every Arizonan has the skills and training they need to compete, a good paying job to raise a family on and the ability to achieve their American dream. Tax giveaways to the wealthiest and big corporations only benefit a few while driving up the national debt. Tax reform should reward hardworking Arizonans, grow our economy, and make sure the wealthiest and big corporations pay their fair share. Rest assured, I will remain committed to working with my colleagues, Republicans and Democrats, to find common-ground solutions that benefit our economy and all Arizonans.

          Thank you for sharing your thoughts on this issue, and I hope you will continue to contact my office with any future comments or questions. I’m committed to being transparent and accountable with all Arizonans, which is why I release my official Senate schedule at kelly.senate.gov. There you can also sign up for my newsletter, receive assistance with a federal agency and learn more about my work as Arizona’s senator.

Sincerely,

Mark Kelly
United States Senator