Gabbard: Big Tech's Excess Profits Should Be Used to Help Struggling Small Businesses
Pandemic Crisis Excess Profits Tax would ensure corporations are in check
Tulsi Gabbard has outlined a plan that would redirect Big Tech and multinational corporations' excess profits to struggling small businesses that were forced to close due to the coronavirus pandemic.
The legislation, which was released Friday and dubbed the Pandemic Crisis Excess Profits Tax, would ensure that corporations such as Amazon, Facebook, Walmart, and Google are not profiting from economic shutdowns, which cleared the market of competition.
Gabbard said in a statement:
“Big tech corporations and big-box retailers are among those who have made excessive profits during the COVID-19 pandemic, while mom and pop shops are being forced to close their doors due to government-mandated restrictions."
The legislation was first used during World War I and World War II to prevent corporations from profiting from the wars.
The plan would add a 95 percent tax on corporations’ excess profits, which would subtract gross earnings from their average gross earnings from 2016 to 2019, prior to the pandemic.
The excess profits from corporations’ would be directed to aid struggling small businesses that were forced to shut down due to restriction as giant conglomerates continue business as usual.
Big tech & big box retailers are seeing windfall profits & will emerge from this crisis stronger than ever at the expense of small businesses who are bearing the brunt of gov restrictions. I introduced HRes 1267 that will tax 95% of excess profits to support small businesses... pic.twitter.com/XjCKazW30d— Tulsi Gabbard 🌺 (@TulsiGabbard) December 18, 2020
Because of this, these large corporations will be better positioned with a competitive advantage over small businesses in a post-pandemic economy. Congress must reinstate the WWII-era excess profit tax used at that time to prevent war-time profiteering, and dedicate the funds collected to help small businesses recover.
“Small businesses are the backbone of our economy and have borne the brunt of this crisis,” Gabbard continued.
“We need to support our small businesses and make sure that they are able to thrive and compete.”
Hundreds of thousands of small businesses across the United States have closed due to the pandemic lockdowns.
There are potentially 160,000 to 317,000 closures between February and September 2020, which equates to 800 to 1,200 small business closures every day.
Meanwhile, the nation’s biggest corporations have netted enormous profits over the last year.
The Guardian reported Amazon saw pandemic sales boost that helped the company triple its profits amid a 37% increase in earnings during the third quarter.
The company’s revenues of $96.15bn were better than analysts expected, and its net income increased to $6.3bn in the third quarter, compared with net income of $2.1bn in the third quarter of 2019.
Its cloud-services unit, Amazon Web Services, reported net sales of $11.6bn for the quarter, up 29% year over year.