WASHINGTON, DC – Billion-dollar corporations and big banks will be the primary beneficiary of corporate tax breaks stuffed inside the so-called Inflation Reduction Act, according to the nonpartisan Joint Committee on Taxation. These tax breaks are a massive transfer of wealth from working-class families to multi-billion dollar companies—they also expand China’s dominance over America’s energy and critical mineral supply chains.
Key Takeaways from JCT Analysis:
- Companies with over $1 billion in sales receive more than 90 percent of special interest green energy tax subsidies.
- Banks and insurers alone receive over half of green energy tax breaks, far more than any other industry or sector.
Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement:
“While President Biden’s supercharged IRS is warming up to target working Americans, his Administration is getting ready to spend those tax dollars to subsidize special interest green energy projects of billion-dollar companies. Many of the same companies getting a green corporate welfare check have shed their American identity to do business with the Chinese Communist Party, and as a result our tax dollars are being funneled to Chinese entities that manipulate our key supply chains.
“While House Republicans are fighting for working families struggling to pay their gasoline and utility bills, House Democrats are prioritizing foreign nations and sending as many taxpayer-funded handouts to corporations as possible. With big banks pocketing three times more of these special interest tax breaks than any other industry, it’s clear Democrats are rewarding their friends on Wall Street that push their partisan ESG agenda.”
The Inflation Reduction Act massively expanded the size of these corporate tax credits, meaning more taxpayer money will be given to billion-dollar companies while China is allowed to continue dominating critical mineral supply chains.
- Primarily Benefits Largest U.S. Corporations: Companies with over $1 billion in sales receive more than 90 percent of Democrats’ green tax benefits.
- Acts as a Slush Fund for Woke Corporate America: Democrats have rewarded big banks that support their partisan ESG agenda with three times more in special interest green tax credits than any other industry, including utilities.
- Enriches the CCP and Chinese Companies: These green tax subsidies do nothing to end China’s dominance of the critical mineral supply chains needed to make equipment like batteries, solar panels and wind turbines.
Green New Deal Tax Breaks Are Handouts to Billion-Dollar Companies
- Electricity Production Tax Break: In 2020, American companies making over $1 billion in sales benefited 31 times more than smaller companies.
- Electricity Investment Tax Break: In 2020, American companies making over $1 billion in sales benefited 11 times more than smaller companies.
Working Americans Pay for Wall Street’s ESG Obsession
- Electricity Production Tax Break: Banks and financial institutions took 57 cents of every dollar spent to prop up Democrats’ favored energy sources.
- Electricity Investment Tax Break: Banks and financial institutions took the majority of each dollar (64 percent) spent to make manufacturing “green” and appease labor unions
- IRA’s Green New Deal Tax Breaks Break the Bank: Special interest “Green” tax handouts in the Inflation Reduction Act will cost upwards of $1.2 trillion, three times what Democrats initially told the American people it would cost. Democrats exempted these tax credits from the IRA’s “Made-in-America” manufacturing tax, ensuring big corporations receive taxpayer-funded welfare at no cost. The result is more American taxpayer money funneled to the wealthy, foreign countries, and billion-dollar companies.
- Democrats’ Inflation Reduction Act Enriches China
- Ford is exploiting the law to qualify for taxpayer-funded credits using Chinese workers and technologies.
- LONGi Green Energy Technologies, a solar panel manufacturer with ties to the Chinese Communist Party and forced labor practices, is partnering with a U.S. firm on a plant in Ohio that will utilize IRA “green” tax credits. The chairman of LONGi has said that concerns over forced labor are merely “political problems.”