Bill Overview
Title: Ending Corporate Greed Act
Description: This bill imposes a tax through 2024 on certain corporations (corporations other than regulated investment companies, real estate investment trusts, or S corporations) that have average annual gross receipts for a three-year period of at least $500 million. The tax is 95% of what are deemed excess profits for a taxable year.
Sponsors: Sen. Sanders, Bernard [I-VT]
Target Audience
Population: People affected by the operations of multinational corporations with at least $500 million in gross receipts.
Estimated Size: 200000000
- The bill targets major corporations with significant revenues, specifically those with at least $500 million in average annual gross receipts.
- Such corporations often operate in multiple countries, thus affecting a global customer and employee base.
- Employees of these corporations may face impacts due to potential reductions in bonuses, pay raises, or layoffs resulting from increased tax burden.
- Consumers may be impacted by potential changes in prices of goods and services as corporations adjust to maintain their profit margins under the new tax.
- Global supply chain partners and smaller businesses that deal with these large corporations might see changes in their contracts or agreements.
- Investors and shareholders of these corporations may also see changes in dividend payouts or share prices due to the tax.
Reasoning
- The policy primarily targets large multinational corporations with substantial revenue, ensuring they contribute more taxes during profitable years. This implies that the primary financial burden falls on these corporations.
- Employees of such corporations, particularly those in higher-paid positions, may face reduced bonuses or pay raises as companies seek to offset tax costs.
- The scale of impact on consumers will depend on the sector. Companies can increase prices slightly to maintain margins, affecting consumers if these are essential goods.
- Investors in these corporations might experience a dip in profits or dividends, impacting those with significant portfolio investments.
- The policy is unlikely to directly affect small businesses or those outside the corporate ecosystems the bill targets.
- It aims to recover $80 billion in Year 1, suggesting a direct impact mostly on corporate profits rather than widespread societal effects.
Simulated Interviews
Corporate Manager (New York, NY)
Age: 34 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I am concerned about potential cuts in bonuses or raises as the company adjusts to new tax burdens.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 6 | 8 |
| Year 10 | 7 | 9 |
| Year 20 | 8 | 9 |
Warehouse Worker (Cleveland, OH)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- I worry if the main corporations reduce contracts, it might affect our workload and income.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 8 |
Software Engineer (San Francisco, CA)
Age: 38 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 4.0 years
Commonness: 14/20
Statement of Opinion:
- I think this might limit salary increases or new project investments, which could slow my career growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 7 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 10 |
| Year 20 | 9 | 10 |
Small Business Owner (Austin, TX)
Age: 50 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- I'm concerned about shifts in contract terms with my corporate clients due to their higher costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 9 |
| Year 20 | 7 | 9 |
App Developer (Seattle, WA)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 13/20
Statement of Opinion:
- Apple and Google are essential for my work; changes in their pricing could affect my business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 9 |
| Year 20 | 8 | 9 |
Investor (Boston, MA)
Age: 40 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- Concerned about reduced dividends and potential drops in stock prices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 9 |
| Year 3 | 6 | 9 |
| Year 5 | 7 | 9 |
| Year 10 | 8 | 10 |
| Year 20 | 9 | 10 |
Retired (Detroit, MI)
Age: 62 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- This tax might lower my dividend income which I depend on for my retirement finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 9 |
| Year 20 | 8 | 9 |
Marketing Specialist (Chicago, IL)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 13/20
Statement of Opinion:
- If our partners face difficulties, it could impact our business growth and my job security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 8 |
Banker (Dallas, TX)
Age: 36 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- I anticipate clients might be concerned about lesser returns, making my job more challenging.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 7 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 8 | 9 |
Retail Worker (Miami, FL)
Age: 27 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 18/20
Statement of Opinion:
- The consumer price impact might be minimal, but I worry about job security if economic pressures increase.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $80000000000 (Low: $60000000000, High: $100000000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Corporations might shift profits overseas to minimize their tax liability, reducing the expected revenue.
- The 95% excess profits tax rate is unprecedented and may lead to significant lobbying and legal challenges.
- There is a risk of short-term economic fallout due to changes in business investment strategies.