ALEC's Efforts to Reshape the Tax Code to Benefit Corporations
The bills on this page represent ALEC corporations' efforts to create Big Business tax giveaways, to offer tax breaks to the rich, and to eviscerate state legislatures' ability to raise revenue through tax increases. These "model bills" are drafted at American Legislative Exchange Council conventions with input from, and approval by, Big Business, then introduced in state legislatures to limit educational opportunities for all Americans. Politicians are elected to represent the people, not corporations; through ALEC, corporations have both a VOICE and a VOTE on specific state laws. Do you?
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Learn MORE about the "Model Bills" ALEC Corporations Are Backing to Rewrite YOUR Rights
The Center for Media and Democracy analyzed the bills ALEC politicians and corporations voted for. More analysis is available below and also at ALEC Exposed's sister sites, PRWatch and SourceWatch.
How Corporations Tried Reshaping the Tax Code in Their Favor
Corporations, Big Business, and Banksters VOTED to reshape the tax code in their favor by:
Calling for repeal of the estate tax, which only taxes very large estates (over $5 million / $10 million for couples) and draws government revenue off perpetuation of wealth and inequality
Supporting repeal (rather than reform) of the Alternative Minimum Tax, a tax designed to prevent the very wealthy from avoiding taxes, but after the Bush tax cuts lowered marginal tax rates without changing the AMT rates, swept-in some middle-class households; ALEC supports extending the Bush tax cuts, but would rather do away with the AMT rather than reform it
promoting a constitutional amendment capping revenue and spending, and requiring that collections above the limit be transferred into an Emergency Reserve Fund, severely limiting a state's ability to respond to price increases (for example, a double digit rise in health care costs).
“Restricting the use of vehicle fees and taxes for highway purposes” through a state Constitutional Amendment requiring that revenues from gas taxes and vehicle-related fees be used for highways, rather than investment in less fossil-fuel dependent rail transit or bike lanes. The proposed ALEC Amendment has been adopted in 29 states (eight of which copied the ALEC language verbatim).
Some of this Corporate Agenda Has Already Become Law
Under the administration of Wisconsin Governor (and ALEC alum) Scott Walker, several changes to the state tax code were drawn from the ALEC corporate wish list in 2011. For example, Governor Walker and the state legislature:
Eliminated the capital gains tax, as called for in the ALEC "Capital Gains Tax Elimination Act.” Wisconsin Republicans led by Rep. Garey Bies (R-1) introduced SB 10 in 2011 which phases out the taxation of capital gains, but the action was superceeded by the Wisconsin budget bill which excludes 100% of the capital gains realized on investment s in Wisconsin for 5 years, costing Wisconsin approximately $79 million per year (according to analysis by the AFL-CIO). An additional exclusion from income tax for capital gains will amount to $36 million per year.
Eliminated combined reporting, which is designed to prevent corporations from hiding profits by filtering income through subsidiaries in states with no income tax (like Nevada). The same principle was set forth in the ALEC “Resolution in Opposition to Mandatory Unitary Combined Reporting."
Requiring a super-majority to raise taxes, as called for in the ALEC "Super-Majority Act;" passed as a law rather than a constitutional amendment, it may be non-binding. Gov. Walker thanked the State Chair of ALEC in Wisconsin, Rep. Leah Vukmir, for her work on the bill.
To learn more about this story, click here (PLACEHOLDER) (Have any of these bills been introduced or enacted in YOUR state? If so, please add that information to the ALEC Exposed page on your state by searching for your state's name in the search engine at the top of this page.)
Limiting Damages for the Loss of Your Child, Spouse, or Parent
(PLACEHOLDER)One of the corporate-politician proposals of ALEC would limit the ability of a family to recover for emotional damages due to the death or injury of a loved one. (LINK) This type of legislation basically makes working class or poor people's lives--as well as the elderly--worth less to their families because any damages for pain and suffering due to the death of a child, spouse, or parent would be limited to an amount equal to their loved one's lost earnings and medical expenses. These kind of corporate provisions try to prevent a jury of YOUR peers from awarding you damages for all you have lost or suffered AFTER a jury finds that your loved one's death was the result of corporate negligence, misconduct, or greed. Is a local legislator who was elected to represent YOU actually protecting the profits of global corporate wrongdoers through such legislation instead of YOU and YOUR FAMILY?
Barring Corporate Liability for Killing Your Dog or Cat
(PLACEHOLDER)In addition to limiting the rights of people injured by corporations, under the guise of limiting "frivolous" litigation in 2006, one of the proposals would make it harder for you to obtain any compensation from a company whose negligence killed your family pet.(LINK) In 2009, Americans learned that many U.S. pet food companies had shipped the production of food for their four-legged companions overseas and that Chinese contractors had contaminated the pet food with melamine in order to increase profit margins, resulting in the death and serious injuries of numerous dogs and cats in the U.S. If passed in your state, ALEC's corporation-backed proposal would make it very difficult for YOU to recover any damages for the loss of your beloved animal companion due to corporate negligence or misconduct in manufacturing food for America's beloved pets.
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