It is unacceptable that the wealthiest corporations in this country are cheating the tax system. When it comes to funding public resources that we all rely on, we all have a part to play. Orange County families pay their fair share; corporations should do the same.
The U.S. loses approximately $1 trillion in unpaid taxes every year because the Internal Revenue Service (IRS) is too underfunded to effectively crack down on corporations cheating our tax laws. Years of budget cuts at the agency have crippled operations and prevented the IRS from properly auditing corporations’ most sophisticated tax evasion strategies. Big corporations and the uber-wealthy should not be allowed to cheat the system while the rest of the country plays by the rules.
Last month, I led a letter urging congressional leadership to equip the IRS with the resources it needs to go after corporate cheaters. The Department of the Treasury estimates that every additional dollar invested in the IRS generates a $6 return, so by simply providing the IRS with adequate funding, the agency could begin to restore fairness to an inequitable tax system.
As your Representative, I will always be a strong advocate for tax fairness. I am working hard to undo the damage of the Trump tax bill, which raised taxes on Orange County families by capping the State and Local Tax (SALT) deduction at $10,000 a year. This was a targeted move to target blue states and communities that choose to invest in what our residents need to thrive: quality public schools, effective first responders, and good public health measures. This cap hurts middle class families and punishes the exact kind of local investment we should be encouraging.
Families should not have to pay double tax on their hard-earned income. To correct this unfair cap, I wrote to congressional leadership and testified before the House Committee in charge of tax policy about the importance of restoring the SALT deduction. I also voted to pass a bill that would repeal the cap and got to share on the House floor what this legislation would mean for Orange County families. The Senate failed to act last Congress, but my colleagues and I in the SALT Caucus are not giving up. I’m proudly backing the SALT Deductibility Act, which would fully restore the SALT deduction.
It’s an honor to represent Orange County families in Congress, where I will continue to advocate for tax reform that helps middle-class families and holds powerful corporations accountable. To stay up to date on how I’m representing you and California's 45th district, please follow @RepKatiePorter on Twitter, Facebook, and Instagram.