Tag Archives: corporations

Billionaires tax would take aim at unrealized gains on assets, most profitable corporations

The broad strokes of the proposal announced by Sen. Ron Wyden, D-Ore., to tax the country’s billionaire class to help fund President Biden’s legislative agenda was laid out early Wednesday as a two-pronged strategy to take aim at the wealthiest individuals and corporations.

Reuters obtained the statement that said, under the proposal, about 700 of the country’s richest will be forced to pay unrealized gains from their assets. The proposal also calls for a 15% corporate minimum tax on the country’s most profitable corporations.

The tax would start being enforced in 2022. Those impacted would own over $1 billion in assets or pull in $100 million a year for three straight years.

Democrats have been working to muster enough votes to pass Biden’s “Build It Back Better” agenda, and believe that Americans would be willing to see the country’s richest, like Elon Musk and Jeff Bezos, pay more in taxes. Many billionaires have seen their fortunes significantly increase after the COVID-19 outbreak while many Americans are struggling.

U.S. Sens. Elizabeth Warren (D-MA) and Ron Wyden (D-OR) speak to reporters about a corporate minimum tax plan at the U.S. Capitol October 26, 2021 in Washington, DC. (Photo by Drew Angerer/Getty Images) (Getty / Getty Images)

Democrats have been trying to win the support of Sens. Joe Manchin and Kyrsten Sinema and the move seems like a step in the right direction. Manchin told reporters that he supported the new way to ensure the wealthy pay their “fair share.” Sinema has also endorsed the proposal for the minimum tax on the most profitable companies.

The business tax proposal is “a commonsense step toward ensuring that highly profitable corporations—which sometimes can avoid the current corporate tax rate—pay a reasonable minimum corporate tax on their profits,” Sinema said, according to the Wall Street Journal. The paper pointed out that the White House also backed the plan on Tuesday.

Wyden, the Senate Finance Committee chairman, said Tuesday that Americans are tired of seeing billionaires “paying little to no taxes for years on end.”

He later retweeted Sen. Elizabeth Warren who posted that the country could no longer “let billionaire corporations get away with paying almost nothing in taxes, while Americans are left holding the bag.”

The Reuters report said the proposal would impose a 23.8% tax rate on these tradable assets “whether or not they have been sold.” The tax would “also impose levies on billionaire ownership stakes in businesses incorporated as pass-through entities and in trusts including real estate investment trusts,” the report said, citing the statement.

Democrats hope to generate at least $200 billion in new revenue over the next decade from the tax, which would include stocks as well as other assets like real estate. Individuals could claim deductions for annual losses in the value of their assets.

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Critics, including Republicans and tax groups such as the National Taxpayers Union, have slammed a tax on billionaires’ unrealized capital gains, arguing it would add more bureaucracy to the already bloated tax system and hurt business investors.

Fox News’ Megan Henney and the Associated Press contributed to this report

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Democrats look to hike taxes on the rich and corporations to pay for $3.5 trillion budget bill

The draft proposal, which could still change before it is expected to be officially released on Monday, calls for increasing the top marginal rate on individuals to 39.6%, up from the 37% rate set by the Republicans’ 2017 tax cut law, according to a plan circulating Sunday and obtained by CNN.

The rate would apply to individuals with taxable income over $400,000 a year and married couples filing jointly earning over $450,000 annually.

The top capital gains rate would increase to 25%, from 20%.

In addition, lawmakers would slap a 3% surtax on individuals with adjusted gross incomes in excess of $5 million.

The proposal also calls for increasing the top corporate tax rate to 26.5%, up from the current 21% set by the Republicans’ 2017 tax cut law. It would only apply to businesses with income in excess of $5 million.

President Joe Biden had called for hiking the corporate rate to 28% to pay for his economic recovery agenda. Prior to the 2017 law, the top rate was 35%.

The plan would also increase a variety of other taxes on the wealthy and businesses, among other measures, raising an estimated total of $2.9 trillion.

This is a breaking story and will be updated.

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Data leak exposes tens of millions of private records from corporations and government agencies

The data leak, which affected American Airlines, Maryland’s health department and New York’s Metropolitan Transportation Authority, among others, led to the exposure of at least 38 million records, including employee information as well as data related to Covid-19 vaccinations, contact tracing and testing appointments, according to UpGuard, the cybersecurity firm that uncovered the issue.

After UpGuard privately notified Microsoft and the affected organizations, the leaks were plugged and the ability to access the information removed. But while the information was unsecured, names, Social Security numbers, phone numbers, dates of birth, demographic information, addresses and even dates of employer drug tests and union membership data were available to anyone with the know-how and inclination to look, said UpGuard.

In the case of Ford Motor Co., UpGuard said, lists of loaner vehicles distributed to dealerships had also been exposed.

“When we learned about the issue, we acted quickly to assess the risk (low) and close the gap,” Ford spokesman T.R. Reid told CNN Business. “There was no breach of sensitive personal information.”

It is unclear which federal agencies may have been affected by the issue.

Several of the impacted organizations contacted by CNN Business, including American Airlines, the Maryland health agency, the MTA and New York’s Department of Education, confirmed that their systems have been secured and that there is no indication their data was improperly accessed.

Microsoft told CNN that only a small number of its customers had configured their systems in a way that allowed data to be accessed by unauthorized viewers.

“We take security and privacy seriously, and we encourage our customers to use best practices when configuring products in ways that best meet their privacy needs,” a Microsoft spokesperson said in a statement. The company has since altered the software’s security settings so that it is more restrictive by default for some users.

At least 47 organizations had been unknowingly exposing their information due to the misconfiguration, UpGuard said in a report published Monday summarizing its work. The company told CNN that there may well have been more organizations that it did not find out about. Because the issue had not been previously identified, it was not something most organizations knew to look for in their existing security audits, said Kelly Rethmeyer, a spokesperson for UpGuard.

“That’s what made so many organizations vulnerable to this potential problem,” Rethmeyer said, adding that “for the most part, our experience was people were very amenable to wanting to get on top of this quickly and correct it, and nobody was aware this was a potential security concern.”

Other organizations cited in UpGuard’s report include the freight giant J.B. Hunt, the state government of Indiana and Microsoft itself. J.B. Hunt didn’t immediately respond to a request for comment. A spokesperson for the state of Indiana declined to comment beyond a press release issued by state health officials disclosing the leak.

In a statement, American Airlines said its version of the misconfiguration affected “business contact information pertaining to corporate travel managers.”

“Passenger data was not impacted,” said company spokesperson Andrea Koos. “We appreciate the work security companies such as UpGuard perform to keep our business and customers safe.”

Charles Gischlar, a spokesperson for Maryland’s health department, said the agency investigated the UpGuard report and found that “there was nothing to suggest any kind of disclosure of personal identifiable information or personal health information at any point.”

A spokesperson for New York City schools said the department is committed to protecting the privacy of its school communities, and that steps were immediately taken to secure the data and to prevent another leak. An MTA official told CNN no data was stolen and the issue was fixed.

The issue traces back to a privacy setting in Microsoft Power Apps, a product widely used by public and private entities to share data. Some organizations, such as public health agencies, have used Power Apps to allow members of the public to access details of their own Covid-19 test results or vaccination records. Other organizations used the software for internal record-keeping purposes.

By default, an access setting designed to limit what data a user can see and that could have prevented the leaks had been set to off, according to UpGuard’s report. UpGuard said it first discovered the issue in one organization on May 24. After scanning the web for similarly unsecured databases and finding numerous other examples, UpGuard reported the issue to Microsoft on June 24 as a potential software vulnerability. According to the report, Microsoft responded saying the settings were working as designed; Microsoft did not dispute that account to CNN.

UpGuard said it began notifying affected organizations in early July, with many plugging the leak within days. By the end of July, data hosted on a domain that appeared to support US government agencies’ use of Power Apps was no longer public, UpGuard said.

Microsoft told CNN Monday that it has changed the default settings so that organizations using Power Apps’ basic templates and design tools will have the privacy setting enabled automatically. Microsoft told CNN that other organizations doing more complex or custom development on Power Apps will still need to enable the setting themselves. Microsoft has also released a tool to help organizations verify their settings, UpGuard said.

Microsoft declined to answer CNN’s questions about whether there was a specific reason for the initial default setting. But the company said it has provided guidance to developers and made documentation readily available that advises organizations on how to properly configure the software according to their needs.

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Corporations line up to condemn Texas voting legislation

Several leading corporations Thursday condemned legislation advanced by the Texas state senate that would limit certain voting methods.

Companies like Amazon, Southwest Airlines, and AT&T panned the GOP measure, which would limit extended early voting hours, prohibit sending absentee voting applications to those who did not request them, and ban drive-thru voting – a method utilized during the coronavirus pandemic.

TEXAS SENATE ADVANCES VOTING LEGISLATION LIMITING EARLY VOTING HOURS, ABSENTEE BALLOT APPLICATIONS

“It has been 56 years since the Voting Rights Act became law, yet efforts to disenfranchise Black people and other minorities continue to this day,” Amazon said in a statement Thursday. “The ability to vote is one of the most prized fundamental rights in our American democracy, and Amazon supports policies that protect and expand those rights.”

American Airlines similarly condemned the move by GOP state legislatures, saying it impedes on their staff’s right to vote.

“As a Texas-based business, we must stand up for the rights of our team members and customers who call Texas home, and honor the sacrifices made by generations of Americans to protect and expand the right to vote,” the company said in a statement.

“Any legislation dealing with how elections are conducted must ensure ballot integrity and security while making it easier to vote, not harder,” the statement continued.

LIBERAL GROUP COMMITS $10M TO CAMPAIGN AGAINST GA LEGISLATORS WHO ‘SUPPORTED THE SUPPRESSION OF VOTING RIGHTS’

But Texas Lt. Gov. Dan Patrick pushed back on the airline’s rejection of the latest legislation targeting voting rights, alleging the company had not read the measure before releasing its statement condemning it.

“I am stunned that American Airlines would put out a statement saying ‘we are strongly opposed to this bill’ … just minutes after their government relations representative called my office and admitted that neither he nor the American Airlines CEO had actually read the legislation,” Patrick said in a statement Thursday evening.

The Texas legislation is similar to a law passed by Georgia earlier this week, a law that also received wide backlash from corporations like Delta and Coca-Cola.

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Former Texas congressman Beto O’Rourke, called the move by conservative states a “coordinated attack.”

“The Texas Senate passed a voter suppression bill early this morning, targeting working Texans, communities of color,” O’Rourke said on Twitter Thursday.

“And when added to voter suppression bills in Georgia and 41 other states, [it] is part of the single largest coordinated attack on democracy in America since 1965,” he added. He claimed the GOP effort was a direct result of minority voter turnout that contributed to red seats flipping blue in November.



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White House looks to raise taxes on wealthy and corporations

Psaki said at a White House briefing that Biden believes that “those at the top are not doing their part” and “obviously that corporations could be paying higher taxes.”

Treasury Secretary Janet Yellen on Sunday suggested a tax hike could be on the horizon when she said she expects the White House to put forward proposals over time to get deficits under control.

“(Biden) hasn’t proposed a wealth tax but he has proposed that corporations and wealthy individuals should pay more in order to meet the needs of the economy, the spending we need to do, and over time I expect that we will be putting forth proposals to get deficits under control,” Yellen told ABC.

Then-candidate Biden proposed raising the top federal tax rate from 37% to 39.6%, its pre-Trump level. Under his plan, the corporate tax rate would rise from 21% to 28%. He would also establish a 15% minimum book tax and tax increases on international profits.

Biden has pledged not to raise taxes on those earning less than $400,000 a year, which is more than 90% of taxpayers. He had also proposed changing the way 401(k) retirement savings accounts are treated in the tax code in order to give low-income earners a bigger tax break up front. 

Psaki said Monday that Biden shares liberal Massachusetts Sen. Elizabeth Warren’s view that “middle class families are paying more than their fair share and those at the top are not doing their part,” when asked if Biden was considering a wealth tax.

Warren, Washington Rep. Pramila Jayapal and Pennsylvania Rep. Brendan Boyle unveiled the Ultra-Millionaire Tax Act earlier this month that would levy a 2% annual tax on the net worth of households and trusts between $50 million and $1 billion as well as a 1% annual surtax on assets above $1 billion, for a 3% tax overall on billionaires.

Warren pitched the idea of a wealth tax when she was running for president in 2020. Yellen said Sunday that a wealth tax is “something that we haven’t decided yet.”

“President Biden during the campaign proposed a higher tax rate on corporations, on individuals and on payments, capital gains and dividend payments that are received, and those are alternatives that address — that are similar in their impact to a wealth tax,” Yellen told ABC.

CNN’s Katie Lobosco contributed to this report.

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