Political Quotes

“Mr. President, today I am reintroducing, along with Senator Grassley, the Government Settlement Transparency and Reform Act. This bill closes a loophole in the Tax Code that allows corporations to claim tax writeoffs for payments made at the direction of the government to settle investigations into illegal and abusive corporate behavior. Corporations accused of illegal activity routinely settle out of court with government agencies because it allows all parties to avoid the time, expense, and uncertainty of going to trial. While there is nothing wrong with settlements that correct wrongful corporate practices and compensate for the resulting harm caused by a corporation, the Tax Code often permits offending companies to claim a business tax deduction for any portion of a settlement that is not paid directly to the government as a penalty or fine for a violation of the law. The Tax Code on this point is vague, and big businesses exploit this by characterizing settlement penalties as tax-deductible business expenses. Illegal corporate behavior is not an ordinary business activity, and it shouldn't be subsidized by taxpayers. Yet, according to a 2015 study by U.S. Public Interest Research Group, PIRG, corporate settlements over a single 3-year period totaled nearly $80 billion, and corporations could claim business deductions for at least $48 billion of that amount.…”