Lets start with what corporations are paying now. Line rate which is 35 . Top tax rate the on corporations. Theres lots of studies that have said that tax rate is substantially less than that. Were talking federal taxes. Were not talking entire state, and all that. Government accountability a nonpartisanis entity, they looked a the for years, 2008 to 2012, they profitable u. S. Corporation. They said theyre paying 14 tax rate. Thats more than half under what the effective tax rate is. Lots of studies that that essentially youre talking about trickle down. If you give more profits to know will spend the money to invest. That will create more jobs and economy. Academicsll, most dont believe studies dont show that trickle down works. We went through that before. Bang for the buck, you get a lot jobs created if you invest in infrastructure. Three times as much job infrastructure as you do with Corporate Tax breaks. Study. A cbo corporations are very flush with profits. Their profiters are higher as ever been. Massive amountis of investment going on. Not there. Is its much less about tax cuts. For about consumer demand whether people have the money in their pocket. Of our spending is consumers buying things. Depressed, too many people dont have work, thats not going to drive the economy. Businesses arent going to invest in that case. Very high profits for corporations now. Lowestaxes at the. Heyve been in decades theres not companies are not taxed. Amount of that the taxes paid is certainly for u. S. Than the taxless rate of 35 . Also the case not because do with the bait of the tax system. Share of the federal tax is that are paid are paid by u. S. Multinationals. Do their earnings accrue abroad. The way tax system works, the due when that income is either earned in the United States or returned to the United States. Firms are investing in lots of strategies or tax Planning Strategies to minimize their tax liability. Al isir actual tax liability. Ar lower the question is not one that i characterize as trickle down. The question is whats the the tax . He know become we know in public ask who writesn the checker, who sends the money to the i. R. S. You can ask who bears the burden. If you take a tax that we know well, one thats easy to relate cigarette tax, smokers dont write a check to the i. R. S. When pack of cigarettes. Its manufactures that pay the tax. Of the the consequence cigarette taxes, cigarette taxes are higher. Design and for good reason. When we think about income taxes difficult to trace through. We know who writes the check. The corporations write the check. Its more difficult to trace through to find out who wears the burden. The burden was born by the corporations. The tax fell on capital. Fall on a it can number of places or in combination. It can fall on workers and lower wages. It can fall on the owners of the firms in terms of lower stock praises. Or it could pass through into consumers. Es for for a long time, the assumption therganizations like Congressional Budget Office, was byhare of that owners of capital. Shareholder. We gotten new evidence, half or so, Research Articles that started to question that finding. Can not the argument, it fall anywhere what have been learning. Of that burden is being born by wages. The types of studies that are conductedded conducted are the following. Look at countries around the world, we look at how tax policy those countries and how wages change. Relationship between Corporate Tax payments and wages. Find reallystudies huge effects. Unbelievable. Like a dollar change in Corporate Taxes. Something that result are less than that a dollar increase in be 50centaxes might or 75 cents. Do those measure wages overall . Are they paying the ceo more so where the dollartor dollar comes in . Up bys not being picked the 20 people at the top. Enough moneyarning to be capturing all than benefit themselves. At this point in time, the Congressional Budget Office contributes 80 of the corporate the owners of by the corporation. And only 20 by the workers. That. To clarify vast majority of the tacks paid corporations are attributed owners of the corpse. Most are well to do folks. True. Thats what cbo is saying is true, we should think about Corporate Tax in one way thats a tax born by rich people. Own the people who corporations. We can make decisions about how we want to tax them. Thats not true, the newer evidence is right and a lot of the burden of tax fall on workers, might think about tax policy differently. It. Might not agree with thats what the latest evidence is suggesting. Your clients would understand its very important what were talking about. Hoot . Y give a if i said to them, were going to cut Corporate Taxes and that great for you mr. On mrs. Smith, because eventually up. Egate wages will go is that going to help them pay for kids child care . Can this translate to them . It will translate to them if get a wage increase. If they dont have the certifications and the training warrant that wage increase just because a breaks and gets tax the entry level workers and middle level workers, if they dont have the skill to be able to earn that higher wage, its to them. To translate lot of times what we see out there with a lot of our investing lotre of dollars into job training and certifications. To rise inare trying Career Pathway the workers that the companies to move up. Will companies spend more money ton job training to be able to employees because lot of the entry level workers. Maybe they only have a high school diploma. Lot of times its a skill set for a company to expand. Lot of times job creation is the skilledwe have workers working to be able to expand our business and grow our be able to grow corporations. Does it end up being part of the workers or the born to dictate if that company will be able to expand. And moreing more employers that the wage increases, theyre not giving because, were going to raise everybodys salary. From being talking boots on ground and working with employers. Matters. On the ground to pick up on that point. Im a tax guy. That tax policy matters. Affects the decisions people make. It would be wrong to think that only tax policy matters. So many other things matter. Skills is one of the huge things. Codean have the best tax in the world, whatever that look like, people so many other dont have the and workthey needed ethic and they dont know the basic soft skills and hard times to get to work on and be responsible it will not make a difference. Were just relating a tax issue and taxes on wealthy folks. Analysis that have been done the trump tax plan at House Republican tax plan trump tax plan still a question mark. Tax plan that he put out during the campaign in september. The analysis of that plan is breaks inf the tax afterlan go to the top 1 ten years. The vast majority goes to the top 1 . Taxs because the corporate rate is cut so deeply. Corporate and business tax rates deeply. So largest benefit will go to the percent. The republican tax plan put out by paul ryan, its hard to of the tax breaks attributed to top one percent. That the top tax rates are cut, its because the cut ande tax rate business tax rate cuts. That suggest that it really born by rich people the rate. Ate my job is so hard. Make an excellent point. When i was talking about doing discussionsng with with folks, with the tax code is best way to help middle income people. No. Answer i got, was its only thing people need to talk about. When you talking about job skills training and funding that, the support for low and isdle income families, it such a multivariant problem. Starts with the amount of revenue. Thatch the programs support those families under government spending, its discretionary. What lawmakers want to do in a given year. Fluctuates. Experience inat other areas where youre helping . Absolutely. Believe that the tax reform gives us the opportunity to ways to help the talkage workers when we about the program, we look at and eic. Ing, its a very important component family. Working theres one program that really has encouraged working and can work towards the job skills and growing and its programs that occurred. Make more than the tax credit goinghey get will start down. They see the advantage because theyre making a higher wage. Its very important. We had anida appropriation that was 500,000 that we received last year. Thisda was the only state year that the vita returns were up 9 . Were able to focus and put a lot of vita sites and reach out families. King we partnered with employers in bringing the vita tax return to employers where the workers are working. Lot of times theres a lott think ofthat when you a low wage worker moderate, they have a lot of barriers. Have two jobs. They have families. Bringing the vita returns to the of employment eliminates one thing they dont have to. We open site on saturday. Having a appropriations and we talk about wanting vita to be something permanent that we see the tax code, because its so important and so usesful for families. As job training. One of the things, eic is thing that we want to preserve. Theou think about it in 1990, we had more single moms work because it encourages work over welfare reform. Programs are very important in looking what we put, i really believe that the opportunity for us to look at how do we help our wage workers. Were talking about families with children. Theyre working hard. Theyre not there because they hand out, they want the easy way out. Folks work harder than we do. They trying to support their family and the tax code not help them because they maw pay a lower tax paying salesyre tax. Theyre taxed in other ways that it affects their daily being to support their families. Example. O give you an how much federal government spend on job training. I dont know that. Let me give you a different comparison. We call a tax trade off. We spend the government spends on the earned income tax about 63 billion a year. Income support to help low wage workers. Work. Es them incentive to they get about 3000 in their pocket through this program, get it everyople year. Thats probably about half of for it. Igible why theyre not taking advantage of it . Because they dont understand it . They dont know about it. Apple, we all, know apple, half the people in phones. M have apple they have 235 billion in offshore thatre untaxed. Alex was talking about that. Are taxed offshore. Paying 6 tax rate on profits offshore. Told Securities Exchange commission and report this to the sec, if they bring the money back, they owe 29 taxen money. E that tax on that is 75 billion. That one company owes us in taxes. N thats more than what is being spent on the eitc. Comparisonsind of that we need to think about. To change ine need order to afford the kind of investments that are going to lives offference and working people. Corporate tax front, what the Corporate Tax rate be . Had a want the we worldwide system which means wherever you are in your dollars, United States tax you on them if its your business. The question is when you bring taxack, thats when they you. Most country have a territorial system, which businesses paid on are earned. Theres a proposal with republicans to change the United States to territorial system. Worldwide ornt territorial . Rate . The top our organization is in favor a position en got now, we want to end the loophole. The firl. D just like we pay our taxes every corporations ought to pay their taxes. They shouldnt be allowed to defer taxes until they bring the money back. Most of the money that they have offshore is not really offshore. Booked offshore in subsidiaries. They cant bring it back to the use it. Ompany and we have not taken a position ratewe think the top tax is. We want to see what it all ends up being. You want to preserve the worldwide system . Our problem with going to system, rightx aboutere losing 100 billion every single year shifting profits offshore through intellectual properties. Its mostly hightech companies and Drug Companies and finance companies. Shift thele to profits offshore and avoid paying these taxes. Inse are profits earned here america. Theyre making it look like they are earned offshore. Close that loophole. Ist the rate is for determined how much money do we haveto raise in order to the kind of economy that will be able to make the investments that we need. Will be able to take care of senior and retirement and etcetera. That number is a little hazy. Depends on what individual will pay. Also it will depend on all gaming the company will do to not pay. Whats your favorite rate . I assume you want to go to territorial . Yes. I think lot of the incomes thats earned in the Current System by corporations is i. R. S. Ble by the we can preserve the income cans being earned and we do that through the sec. Being able to capture that funding, would prove very difficult. The reason is were in a competitive environment. Ago when the United States economy was more close and we were less engaged in markets wereancial less sophisticated. Locately property engagingand they are in new strategies. They will continue to do that. They will continue to optimize their tax. Think of as unfair and unjust and unright. Think about to having a tax system thats operational. To engage in these practices, not saying they dont. With frank. In large, difference between our tax system and the tax system of partners is large. 35 in tax rate around the United States plus state and local tax. Law they pay less and take all the tax breaks . When theyre earning additional dollar, they generally would pay that amount was a tax. Hat dollar sameey engage in the orivity in france, germany portugal or canada or mexico, they would pay for less. Say well, theyre thats not fire or right. Operational for them. Their ox is to their shareholders and not to their country . Theyre complying to the law. They are truly earning money the world and paying taxes and offshore. They are also engaging in thetegies to maximize extent to which they are earning money. I dont think we can capture money. Certainly not by raising the system. E tax the question is is there another way a wouldnt encourage them to play this game. People suggested that there will be less gamesmanship if the was lower. If we had a rate like other 20srys rates in the instead the 30s. Herewould pay their taxes in the United States. Put forward aans quiteal i think is elegant. That will go to the the heart of this issue. The other thing i will note, when we think just to put magnitude on things, about 10 tax receipts come from the Corporate Taxes. Where does the federal money that it the gets . 18 of revenue generally taxes. Dividual income most of the money thats collected today to pay for the have are fromwe the income tax system. Reformingink about the tax code and reform the tax code in a way to raise more would seem we would want to do that, we would go where the money is. The tax base and collect more none from more money from individuals. Lot ofof business taxes it is coming toth individual code. To become a company business. Businesses profits get passed through to you and you pay the tax under individual return. Over the last 30 or 40 years, a hasof business income tax transferred to the individual income tax system. Of theart because inefficiency of the corporate system. Two quick points. So folks understand. Most of the money thats offshore 75 of it is owned or 50 conferences. 40 is held by 10 corporations. A small number of a vastorporations that has amount of these profits. , microsoft, g. E. And pfizer. Were talking about a very small number of companies. Lot of Companies Paying 31 and 32 . Are domestic companies. The tail wagging the dog here, thathese multinationals arent paying close to their fair share. The second closing point i would make, most of the money is not or germany or britain. Companies are two competitors of ours. Offshore profits are booked in tax havens. With that. Er compete if you create aerstorial tax the tax rateans that theyre going to pay is where they book their profit. Going to make the world a tax haven. Firl and paythe tax right now to the United States government. What are you going to do . Corporation. [laughter] would you do . 25 rate. Wants tohat the house do. Lower from 35 to 25 . Propose 20 . For corporations oh wait. Okay, 20 . I dont know. Issome point when the rate low enough, its important to diminish it. The same with the whole spectrum provisions. Be depreciation or this credit or that credit. When the rate gets low, the getsrtion in the code. Mall thelso matters lot less in policy. Whether we have the it or not, the rate 15, it doesnt matter much when we had it or not. Lets talk specific tax rates for individuals. To resolveoing corporation taxation. Earned income tax credit. Think needs to be done to improve on that credit so it has better target to the need it to most . We need better awareness so everyone who should be getting it is getting it. We also have a problem with payments. Lot of people who are not eligible for program are benefits. Ly gets the we need to figure out how to tackle that problem. Two thingsare the that lawmakers should focus on. Advertising. D first of all, lets preserve it. Lets not lose what we have. Also have where a woman athout children, they get smaller credit. 25 or overis under 65, theyre not eligible. Thate a lot of seniors have to work. Its not that theyre just working a little bit because extra money. Theyre over 65, theyre not eligible to get a credit. Looking at how can we expand that. About it worker maybe 23r 25, they years old and theyre not getting a credit, they still poverty. In maybe theyre only 16 or 17,000 a year. That applies to single under 25. They dont get the earned income tax credit. Theyre under 25 or over. Those and both of being able to expanding eligibility. Not increasing the value of it. So changing, expanding it people under 25 if their parent and people under 65 if theyre low income. Eic is one of the best mechanisms we have to encourage work. Corporations that need to have the demand, family receiving the usingfunds that theyre to pay down their debt, theyre using it to put a down payment a car, they are using it during times that maybe theyre not getting a paycheck that saving the money. We have to look at it. Economic impact. Theyre spending the money back in the economy that stimulates increases demand. Its a very po