{"id":12375,"date":"2024-05-19T17:00:22","date_gmt":"2024-05-19T14:00:22","guid":{"rendered":"https:\/\/ch.jfdi.cc\/?p=12375"},"modified":"2024-05-19T17:00:22","modified_gmt":"2024-05-19T14:00:22","slug":"trumps-corporate-tax-cuts-paved-the-way-for-inflation","status":"publish","type":"post","link":"https:\/\/ch.jfdi.cc\/?p=12375","title":{"rendered":"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation"},"content":{"rendered":"
Photo by sippakorn yamkasikorn on Unsplash<\/figcaption><\/figure>\n

By Lindsay Owens \/ OtherWords<\/strong><\/p>\n

Next year, when key provisions of President Trump\u2019s 2017 tax breaks to the wealthy and corporations expire, we have an opportunity to get our money back.<\/p>\n

I\u2019m not just talking about all the foregone tax revenue we\u2019ve lost because the rich have paid so little since 2017 \u2014 though we should get that back, too. I\u2019m talking about the money families have lost to corporate price gouging.<\/p>\n

Let me explain.<\/p>\n

In 2017, Republicans slashed the corporate tax rate from 35 percent to 21 percent, giving massive corporations their biggest tax windfall\u00a0since Ronald Reagan\u00a0was president. A few years later, as Americans emerged from a global pandemic, these same corporations drove up prices for families.<\/p>\n

While inflation hamstrung workers and families, it didn\u2019t make a dent in corporate profits. In fact, as many\u00a0CEOs boasted themselves, it\u2019s been a\u00a0boon<\/em>. Companies simply passed rising costs along to consumers \u2014 and then some, bringing in record profits as a result.<\/p>\n

All told, corporate profit margins skyrocketed to\u00a070 year-highs. And by the end of 2023, when Americans were beyond fed up, after-tax corporate profits hit an all-time record high of $2.8 trillion. My organization, Groundwork Collaborative, recently found that\u00a0corporate profits drove\u00a0<\/em>over 50\u00a0percent of inflation<\/em>\u00a0in the second and third quarters of last year.<\/p>\n

But why would a change in the corporate tax rate unleash the kind of rampant corporate profiteering we saw in the aftermath of the pandemic? Simple: It\u2019s a lot more fun to gouge customers when you get to keep more of what you pull in.<\/p>\n

Look at Procter & Gamble, which has raised the price of everything from toothpaste to diapers. Last year, the company\u00a0pulled in\u00a0more than $39 billion in profit.<\/p>\n

If they had to pay the 35 percent statutory tax rate, they would have sent nearly $14 billion to Uncle Sam. Instead, they paid a 21 percent rate and, using loopholes, got to\u00a0keep\u00a0an extra $10 billion \u2014 which helped with their combined\u00a0$16.4 billion\u00a0worth of dividends and stock buybacks for shareholders.<\/p>\n

Corporations did well from Trump\u2019s corporate tax cuts, with executives getting\u00a0big raises\u00a0and shareholders receiving\u00a0big buybacks. But the real bonus came when inflation hit. Corporations used the cover of supply chain issues and broader inflation to hike prices\u00a0more<\/em>\u00a0than their higher input costs justified \u2014 and they didn\u2019t have to worry about their tax bill.<\/p>\n

Our tax code is exacerbating some of the worst corporate excesses, effectively \u201csubsidizing corporate price gouging,\u201d as Sen. Elizabeth Warren (D-MA)\u00a0described it recently. But it\u2019s not only that low tax rates incentivize companies to overcharge. Rock-bottom tax rates also make collusion more profitable, as we saw with Pioneer Oil.<\/p>\n

Recently, the Federal Trade Commission barred former Pioneer Oil CEO Scott Sheffield from joining the board of ExxonMobil following their merger, because Sheffield allegedly colluded with OPEC to raise oil prices. As families struggled with higher energy costs, the oil and gas industry banded together to keep prices high, which according to one analyst\u00a0accounted\u00a0for 27 percent of inflation in 2021.<\/p>\n

When the reward is higher with lower corporate taxes, executives like Sheffield are more willing to take the risk. Higher corporate taxes are both crucial for accountability and for ensuring that there\u2019s far less incentive for executives to squeeze as much as they can from their customers.<\/p>\n

Wall Street tycoons and CEOs didn\u2019t take the heat of inflation \u2014 they fanned its flames and families got burned. It\u2019s no wonder people overwhelmingly\u00a0favor\u00a0a tax code that\u2019s no longer rigged for corporations, especially as they struggle with high prices.<\/p>\n

Congress raising the corporate tax rate in 2025 is an opportunity to recoup some of the truly obscene profits corporate America raked in during this period of economic upheaval for American families. It\u2019s time Americans got their money back.<\/p>\n

Please share this story and help us grow our network!<\/em><\/h4>\n

Editor\u2019s Note<\/strong>: <\/i>It\u2019s been four years since ScheerPost was born, maturing into an award-winning top news source on the most important issues of our time at a moment when the once vaunted model of responsible journalism is overwhelmingly the play thing of self-serving billionaires and their corporate scribes<\/i>. Alternatives of integrity are desperately needed, and we are one of them. <\/i>Please support our\u00a0independent journalism by contributing a \u201cbirthday gift\u201d to help us reach our goal of $50,000 \u2014 we are 75% there<\/strong>.<\/i><\/span><\/span> We can\u2019t thank you enough, and promise to keep bringing you this kind of vital news.<\/i><\/em><\/p>\n

<\/figure>\n

You can also make a donation to our\u00a0PayPal\u00a0or subscribe to our\u00a0Patreon.<\/em><\/strong><\/p>\n

\n
<\/figure>\n<\/figure>\n","protected":false},"excerpt":{"rendered":"

Key provisions of President Trump’s 2017 tax breaks to the wealthy and corporations are set to expire next year, providing an opportunity to recoup money lost to corporate price gouging.<\/p>\n","protected":false},"author":6,"featured_media":12376,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1521,1701,5800,3492,4461,7296,8726,3348,33,6196,2021,4736,4498,8749,6064,4919,3399,5099,2511,3471,10272,9912,358,2023,9206,5596,7217,4548,5935,10334,1991,67,2796,8911,4920,387,2850,2628,3331,5076,2057,1493,6121,5175,4843,5838,10476,1033,2247,10271,8171,1005,5612,1270,4054,10273,4291,4472,1358,1065,6860,4505,3358,4556,5680,4771,1183,618,114,1006,841,380,255,4928,9204],"class_list":["post-12375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-1521","tag-accountability","tag-americans","tag-bill","tag-billionaires","tag-birthday","tag-ceo","tag-change","tag-companies","tag-congress","tag-consumers","tag-corporate-profits","tag-corporate-tax","tag-corporate-tax-breaks","tag-corporate-tax-cuts","tag-corporate-tax-rate","tag-corporate-taxes","tag-corporations","tag-costs","tag-customers","tag-dividends","tag-donation","tag-energy","tag-energy-costs","tag-exxonmobil","tag-families","tag-flames","tag-gas","tag-gift","tag-heat","tag-industry","tag-inflation","tag-issues","tag-journalism","tag-loopholes","tag-lost","tag-merger","tag-money","tag-news","tag-oil","tag-oil-prices","tag-opec","tag-opportunity","tag-pandemic","tag-president","tag-price","tag-price-gouging","tag-prices","tag-profit","tag-profits","tag-record","tag-republicans","tag-revenue","tag-rising-costs","tag-risk","tag-stock","tag-stock-buybacks","tag-supply-chain","tag-support","tag-tax","tag-tax-bill","tag-tax-breaks","tag-tax-cuts","tag-tax-rate","tag-tax-rates","tag-tax-revenue","tag-taxes","tag-top","tag-top-news","tag-trade","tag-trump","tag-us","tag-wall-street","tag-wealthy","tag-workers"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\nTrump\u2019s Corporate Tax Cuts Paved the Way for Inflation<\/title>\n<meta name=\"description\" content=\"Corporate Profiteering. corporate tax breaks, price gouging, inflation\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation\" \/>\n<meta property=\"og:description\" content=\"Corporate Profiteering. corporate tax breaks, price gouging, inflation\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ch.jfdi.cc\/?p=12375\" \/>\n<meta property=\"og:site_name\" content=\"ch.jfdi.cc\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-19T14:00:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ch.jfdi.cc\/wp-content\/uploads\/2024\/05\/trumps-corporate-tax-cuts-paved-the-way-for-inflation.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"640\" \/>\n\t<meta property=\"og:image:height\" content=\"426\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Robot\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robot\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375\"},\"author\":{\"name\":\"Robot\",\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/#\\\/schema\\\/person\\\/24aeef359ef2df73056e7502e1cadc71\"},\"headline\":\"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation\",\"datePublished\":\"2024-05-19T14:00:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375\"},\"wordCount\":775,\"image\":{\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/ch.jfdi.cc\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/trumps-corporate-tax-cuts-paved-the-way-for-inflation.jpg\",\"keywords\":[\"000\",\"accountability\",\"Americans\",\"bill\",\"billionaires\",\"birthday\",\"CEO\",\"change\",\"Companies\",\"Congress\",\"consumers\",\"corporate profits\",\"corporate tax\",\"corporate tax breaks\",\"corporate tax cuts\",\"corporate tax rate\",\"corporate taxes\",\"corporations\",\"costs\",\"customers\",\"dividends\",\"donation\",\"Energy\",\"energy costs\",\"ExxonMobil\",\"families\",\"flames\",\"gas\",\"gift\",\"heat\",\"Industry\",\"inflation\",\"issues\",\"journalism\",\"loopholes\",\"lost\",\"merger\",\"money\",\"news\",\"oil\",\"oil prices\",\"OPEC\",\"opportunity\",\"pandemic\",\"president\",\"price\",\"price gouging\",\"prices\",\"profit\",\"profits\",\"record\",\"republicans\",\"revenue\",\"rising costs\",\"risk\",\"stock\",\"stock buybacks\",\"supply chain\",\"support\",\"tax\",\"tax bill\",\"tax breaks\",\"tax cuts\",\"tax rate\",\"tax rates\",\"tax revenue\",\"taxes\",\"top\",\"Top News\",\"trade\",\"Trump\",\"US\",\"Wall Street\",\"wealthy\",\"workers\"],\"articleSection\":[\"Other\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375\",\"url\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375\",\"name\":\"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/ch.jfdi.cc\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/trumps-corporate-tax-cuts-paved-the-way-for-inflation.jpg\",\"datePublished\":\"2024-05-19T14:00:22+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/#\\\/schema\\\/person\\\/24aeef359ef2df73056e7502e1cadc71\"},\"description\":\"Corporate Profiteering. corporate tax breaks, price gouging, inflation\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375#primaryimage\",\"url\":\"https:\\\/\\\/ch.jfdi.cc\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/trumps-corporate-tax-cuts-paved-the-way-for-inflation.jpg\",\"contentUrl\":\"https:\\\/\\\/ch.jfdi.cc\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/trumps-corporate-tax-cuts-paved-the-way-for-inflation.jpg\",\"width\":640,\"height\":426,\"caption\":\"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/?p=12375#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/ch.jfdi.cc\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/#website\",\"url\":\"https:\\\/\\\/ch.jfdi.cc\\\/\",\"name\":\"ch.jfdi.cc\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/ch.jfdi.cc\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/ch.jfdi.cc\\\/#\\\/schema\\\/person\\\/24aeef359ef2df73056e7502e1cadc71\",\"name\":\"Robot\",\"url\":\"https:\\\/\\\/ch.jfdi.cc\\\/?author=6\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation","description":"Corporate Profiteering. corporate tax breaks, price gouging, inflation","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_GB","og_type":"article","og_title":"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation","og_description":"Corporate Profiteering. corporate tax breaks, price gouging, inflation","og_url":"https:\/\/ch.jfdi.cc\/?p=12375","og_site_name":"ch.jfdi.cc","article_published_time":"2024-05-19T14:00:22+00:00","og_image":[{"width":640,"height":426,"url":"https:\/\/ch.jfdi.cc\/wp-content\/uploads\/2024\/05\/trumps-corporate-tax-cuts-paved-the-way-for-inflation.jpg","type":"image\/jpeg"}],"author":"Robot","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Robot","Estimated reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ch.jfdi.cc\/?p=12375#article","isPartOf":{"@id":"https:\/\/ch.jfdi.cc\/?p=12375"},"author":{"name":"Robot","@id":"https:\/\/ch.jfdi.cc\/#\/schema\/person\/24aeef359ef2df73056e7502e1cadc71"},"headline":"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation","datePublished":"2024-05-19T14:00:22+00:00","mainEntityOfPage":{"@id":"https:\/\/ch.jfdi.cc\/?p=12375"},"wordCount":775,"image":{"@id":"https:\/\/ch.jfdi.cc\/?p=12375#primaryimage"},"thumbnailUrl":"https:\/\/ch.jfdi.cc\/wp-content\/uploads\/2024\/05\/trumps-corporate-tax-cuts-paved-the-way-for-inflation.jpg","keywords":["000","accountability","Americans","bill","billionaires","birthday","CEO","change","Companies","Congress","consumers","corporate profits","corporate tax","corporate tax breaks","corporate tax cuts","corporate tax rate","corporate taxes","corporations","costs","customers","dividends","donation","Energy","energy costs","ExxonMobil","families","flames","gas","gift","heat","Industry","inflation","issues","journalism","loopholes","lost","merger","money","news","oil","oil prices","OPEC","opportunity","pandemic","president","price","price gouging","prices","profit","profits","record","republicans","revenue","rising costs","risk","stock","stock buybacks","supply chain","support","tax","tax bill","tax breaks","tax cuts","tax rate","tax rates","tax revenue","taxes","top","Top News","trade","Trump","US","Wall Street","wealthy","workers"],"articleSection":["Other"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/ch.jfdi.cc\/?p=12375","url":"https:\/\/ch.jfdi.cc\/?p=12375","name":"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation","isPartOf":{"@id":"https:\/\/ch.jfdi.cc\/#website"},"primaryImageOfPage":{"@id":"https:\/\/ch.jfdi.cc\/?p=12375#primaryimage"},"image":{"@id":"https:\/\/ch.jfdi.cc\/?p=12375#primaryimage"},"thumbnailUrl":"https:\/\/ch.jfdi.cc\/wp-content\/uploads\/2024\/05\/trumps-corporate-tax-cuts-paved-the-way-for-inflation.jpg","datePublished":"2024-05-19T14:00:22+00:00","author":{"@id":"https:\/\/ch.jfdi.cc\/#\/schema\/person\/24aeef359ef2df73056e7502e1cadc71"},"description":"Corporate Profiteering. corporate tax breaks, price gouging, inflation","breadcrumb":{"@id":"https:\/\/ch.jfdi.cc\/?p=12375#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ch.jfdi.cc\/?p=12375"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/ch.jfdi.cc\/?p=12375#primaryimage","url":"https:\/\/ch.jfdi.cc\/wp-content\/uploads\/2024\/05\/trumps-corporate-tax-cuts-paved-the-way-for-inflation.jpg","contentUrl":"https:\/\/ch.jfdi.cc\/wp-content\/uploads\/2024\/05\/trumps-corporate-tax-cuts-paved-the-way-for-inflation.jpg","width":640,"height":426,"caption":"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation"},{"@type":"BreadcrumbList","@id":"https:\/\/ch.jfdi.cc\/?p=12375#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ch.jfdi.cc\/"},{"@type":"ListItem","position":2,"name":"Trump\u2019s Corporate Tax Cuts Paved the Way for Inflation"}]},{"@type":"WebSite","@id":"https:\/\/ch.jfdi.cc\/#website","url":"https:\/\/ch.jfdi.cc\/","name":"ch.jfdi.cc","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ch.jfdi.cc\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/ch.jfdi.cc\/#\/schema\/person\/24aeef359ef2df73056e7502e1cadc71","name":"Robot","url":"https:\/\/ch.jfdi.cc\/?author=6"}]}},"_links":{"self":[{"href":"https:\/\/ch.jfdi.cc\/index.php?rest_route=\/wp\/v2\/posts\/12375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ch.jfdi.cc\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ch.jfdi.cc\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ch.jfdi.cc\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/ch.jfdi.cc\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12375"}],"version-history":[{"count":0,"href":"https:\/\/ch.jfdi.cc\/index.php?rest_route=\/wp\/v2\/posts\/12375\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ch.jfdi.cc\/index.php?rest_route=\/wp\/v2\/media\/12376"}],"wp:attachment":[{"href":"https:\/\/ch.jfdi.cc\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ch.jfdi.cc\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ch.jfdi.cc\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}