The Senate Budget Committee today approved an amendment by Sen. Bernie Sanders (I-Vt.) to reduce the deficit by ensuring that large, profitable corporations cannot avoid paying income taxes.
Sanders' amendment was adopted 12 to 10 as the committee began work on a budget blueprint for the next fiscal year.
"At a time when corporations are experiencing record-breaking profits while corporate income tax revenue as a percentage of GDP is near a record low, it is time that we demand that corporate America contribute in a significant way toward deficit reduction," Sanders said.
About one out of four large, profitable corporations now pay nothing in federal income taxes.
"When Bank of America, Citigroup, Wells Fargo and other large financial institutions needed government assistance in 2008, they wanted all of the advantages of being American. They went to the U.S. Treasury Department and the Federal Reserve to receive trillions of dollars in financial aid. But when it comes to paying taxes, these same financial institutions want to avoid U.S. taxes by sheltering their profits in the Cayman Islands, Bermuda, the Bahamas or other tax havens," Sanders said. "That is unacceptable."