Erik Paulsen Is A Friend To Business, Not Working People

Rep. Erik Paulsen (R-Minn.) has never supported taxing businesses. Since 2014, Paulsen has had four major opportunities to do so, but has declined every time.

In 2014, for instance, he voted in favor of H.R. 4457. The act was designed to amend the IRS code to allow businesses to make more expenses tax-deductible.

On the same day, he voted for the S Corporation Permanent Tax Relief Act of 2014. The act amended the IRS code to reduce the period during which S corporations are subject to taxation. (S corporations are a type of corporation that passes corporate income, losses, deductions, and credit to their shareholders.)

Sen. Carl Levin (D-Mich.) criticized both pieces of legislation for making permanent tax breaks that had not been paid for or offset elsewhere. He argued that together, they bills would add $75 billion in deficit increases to the federal budget.

For the same reasons, President Obama indicated that he would veto both bills if they made it to his desk.

Obama was also critical of another Paulsen-backed bill, the American Research and Competitiveness Act of 2015. The premise of the bill sounded innocuous enough: to adjust the IRS code to simplify and make permanent research credit.

But the White House released a statement “strongly” opposing the act, saying it “would permanently extend and expand the R&D credit without offsetting the cost, adding to long-run deficits.”

“By making the R&D credit permanent without offsets, H.R. 880 would add $180 billion to the deficit over the next 10 years. H.R. 880 violates the very standard that House and Senate Republicans approved less than a month ago in their concurrent budget resolution, which requires offsetting the cost of any tax extenders that are made permanent with other revenue measures. If the House passes H.R. 880, it will have approved nearly $600 billion in deficit-increasing tax cuts mainly for corporations and wealthy estates this year – none of which are provided for in the Republicans’ own budget.”

Finally, Paulsen voted for another piece of legislation designed, ostensibly, to grow small businesses. America’s Small Business Tax Relief Act of 2015 was a barely modified version of H.R. 4457 that the House had passed the year before, and extended additional tax allowances to businesses.

Americans for Tax Fairness, a nonprofit that promotes a progressive taxation system, opposed the act, saying in a statement, “America’s Small Business Tax Relief Act of 2015 … will cost $77 billion over 10 years, according to the Joint Committee on Taxation.” The organization criticized the fact that the act made business tax breaks permanent without also making permanent “other long-standing tax provisions that benefit working families” – including tax relief for people who are underwater on their mortgages and tax deductions for teachers who provide materials for students.

Erik Paulsen’s record shows that he’s a friend to the rich business class and moneyed interests, not the working people of Edina and the rest of the Third Congressional District.

One thought on “Erik Paulsen Is A Friend To Business, Not Working People

  1. Erik Paulsen has had a long and consistent career … lotsa talk about the national debt, but yet HR 4437 would have added more to the deficit than all the non-defense spending that year.

    Here’s an old write-up
    Paulsen Supports Bonus To Help Business While Ignoring Plea From Coon Rapids

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