Rep. Carol Shea-Porter made a perfectly reasonable statement about corporate taxes, saying that the high marginal rate is “just a suggestion.” Clearly she meant that the actual taxes paid by corporations is far lower than the stated rates, and she’s right. The actual rate is about 1/3 of the marginal rate. Bryan Fischer tried to make fun of her for that and missed the mark completely.
But Fischer played a clip of Shea-Porter making this true statement and then mocked her for it, saying “tell that to Martha Stewart, tell that to Bernie Madoff, tell that to who knows how many people are in prison for treating the tax code as if it were just a suggestion.”
Uh, Bryan…neither Stewart nor Madoff went to prison for anything involving the tax code. Stewart went to prison for insider trading and Madoff for running a ponzi scheme. And he’s missing the point completely. The average corporate tax rate that is actually paid is about 12-13%, far lower than the 35% marginal rate. That’s because corporations have paid off legislators to give them a massive number of tax breaks and subsidies that lower their rates and increase their profits. That’s why corporate taxes have gone from more than 30% of federal revenue to less than 10%.