Ways and Means Committee passes 15% corporate rate in reconciliation

Trump administration pushed massive corporate tax cuts in Feb. 2025, including lowering manufacturer rates from 21% to 15%, with House Republicans passing budget resolution allowing $4.5 trillion in tax cuts over 10 years

Corporate tax rate reduction from 21% to 15% eliminates federal revenue equivalent to the entire defense budget, forcing taxpayers to absorb mounting national debt through reduced services and future tax increases

The tax cuts aim to attract foreign investment and prevent American companies from relocating overseas, but European and Asian competitors respond with their own reductions, creating a global race to the bottom

Tax restructuring favors business owners who can reclassify salary income as corporate profits taxed at lower rates, benefiting professional service providers and entrepreneurs over working-class employees

Congressional Budget Office scoring requires offsetting revenue increases or program eliminations to maintain deficit neutrality, typically resolved by reducing social services while protecting business incentives

Permanent corporate reductions create $2 trillion revenue loss while corporations capture permanent benefits and working families face reduced government services

Small business pass-through entities gain disproportionate benefits over employee wages, increasing inequality between capital and labor income