(TheConservativeTimes.org) – According to a new analysis, U.S. companies paid more to top executives than they did in taxes over the last few years.
This analysis has come to light while a push for companies to pay their fair share has emerged from Joe Biden and his presidential campaign. The President has previously spoken about U.S. companies and the fact that they do not pay enough taxes and he is proposing a higher percentage for companies to pay.
There is a link between having high-paid top executives and paying a lower tax rate over the last five years. Many have said that the lack of taxes paid by corporations is affecting the economy and finances of the entire United States.
Sarah Anderson, who is a lead author of the report, said “We have these never-ending fights in Congress over our fiscal situation, one crisis after another, and one reason why we’re facing fiscal challenges is because corporations have not been paying their fair share of taxes.”
She continued, “The executive compensation system is really set up to incentivize executives to push for corporate tax cuts and take other measures that will boost the value of their shares in the short term and the value of their paychecks.”
Some of the top corporations that are being accused of this are some popular companies that you may know like Tesla and Ford. It’s said that Tesla used a legal tax strategy in order to pay less taxes while paying executives billions.
Chief Policy Officer at the Chamber of Commerce, Niel Bradley said “We haven’t seen the study but it sounds like something done by people with a political agenda who don’t understand how our tax system works.”
He continued to say that if a company reinvests profits, pays more expenses than profits, or loses money then the company won’t have to pay as much taxes due to having less profit to tax.
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