¶ Overview
- Cornyn wanted to renew the Tax Cuts and Jobs Act, Trump’s 2017 tax cuts.
- Cornyn secured initial passage and fended off revisions for Trump’s tax cuts.
- Cornyn inserted a provision in the Trump tax bill’s negotiations that benefited pass-through businesses, special interests, and the wealthiest Americans.
¶ Cornyn Voted To Benefit Large Corporations And Hurt The Middle Class With The Trump Tax Cuts
¶ 2025: Cornyn Wanted To Renew Trump’s Tax Cuts
Cornyn Met With Trump “To Discuss Extending The Trump Tax Cuts” And Claimed That Senate Republicans Were “United With The President To Deliver For Americans.” Senator John Cornyn tweeted, “Great meeting with @POTUS today to discuss extending the Trump Tax Cuts & ensuring that taxes are not increased for millions of Americans. Senate Republicans are united with the President to deliver for Americans 🇺🇸.” [Twitter, @JohnCornyn, 4/2/25]
Cornyn Said That Trump’s Tax Cuts Benefitted “Working Families,” Who He Claimed Would “Face A $1,500 Tax Increase Next Year” If The Cuts Weren’t Extended. According to a press release from Senator John Cornyn, “‘Our Democratic colleagues, some of them have been claiming that extending these tax cut provisions… will benefit the very rich at the expense of the rest of us.’ ‘It’s almost as if there is a concerted or orchestrated effort to use disinformation and propaganda to try to prejudice the American people against what it is we need to do in order to avoid this huge tax increase on the vast majority of Americans.’ [...] ‘The reason why Republicans won the majority in both houses and President Trump was reelected is because he connected with the concerns of everyday Americans, and particularly their concerns about the overspending and inflation. Not to mention the border.’ ‘If Congress fails to extend the Trump Tax Cuts that expire at the end of this year, the average family of four making $75,000 a year will face a $1,500 tax increase next year. Working families will see the child tax credit cut in half.’” [Press Release – Senator John Cornyn, 3/10/25]
¶ 2017: Cornyn Secured Passage Of Trump’s Tax Cuts
The Intercept: Cornyn Was Tasked With “Securing The Largest Spoil: Trump’s Massive Tax Cut Package.” According to the Intercept, “Now majority whip, Cornyn was tasked in 2017 with securing the largest spoil: Trump’s massive tax cut package. Behind closed doors, Cornyn masterfully cut deals with senators to ensure that the bill would pass. The result was a transformational redistribution of wealth to corporations and the ultrarich that Republicans promised would be paid for with magical levels of economic growth (it is actually expected to add at least $1 trillion to the federal debt).” [The Intercept, 9/30/19]
- The Intercept: “Behind Closed Doors, Cornyn Masterfully Cut Deals With Senators To Ensure That” Trump’s Tax Cuts Would Pass. According to the Intercept, “Now majority whip, Cornyn was tasked in 2017 with securing the largest spoil: Trump’s massive tax cut package. Behind closed doors, Cornyn masterfully cut deals with senators to ensure that the bill would pass. The result was a transformational redistribution of wealth to corporations and the ultrarich that Republicans promised would be paid for with magical levels of economic growth (it is actually expected to add at least $1 trillion to the federal debt).” [The Intercept, 9/30/19]
The Intercept: The Result Of Cornyn Securing The Trump Tax Cuts “Was A Transformational Redistribution of Wealth To Corporations And The Ultrarich.” According to the Intercept, “Now majority whip, Cornyn was tasked in 2017 with securing the largest spoil: Trump’s massive tax cut package. Behind closed doors, Cornyn masterfully cut deals with senators to ensure that the bill would pass. The result was a transformational redistribution of wealth to corporations and the ultrarich that Republicans promised would be paid for with magical levels of economic growth (it is actually expected to add at least $1 trillion to the federal debt).” [The Intercept, 9/30/19]
¶ Cornyn Voted For Trump Tax Reform
2017: Cornyn Voted For The Senate GOP’s Tax Reform Bill, Which Substantially Cut Taxes For Corporations And The Rich, And Repealed The Individual Mandate. In December 2017, Cornyn voted for the Senate’s version of Trump’s tax reform bill. According to Congressional Quarterly, “Passage of the bill, as amended, that would revise the federal income tax system by lowering individual and corporate tax rates, repealing various deductions through 2025, specifically by eliminating the deduction for state and local income taxes through 2025, increasing the deduction for pass-through entities and raising the child tax credit through 2025. It would also open parts of the Arctic National Wildlife Refuge to oil and gas drilling.” The vote was on passage. The Senate passed the bill by a vote of 51 to 49. President Trump later signed an amended version of the bill into law. [Senate Vote 303, 12/2/17; Congressional Quarterly, 12/2/17; Congressional Actions, H.R. 1]
¶ Cornyn Opposed Requiring The Trump Tax Bill To Get A CBO Score Prior To Consideration
2017: Cornyn Voted Against Requiring Senate Amendments To Reconciliation Bills Receive A CBO Score At Least 28 Hours Prior To Consideration. In October 2017, Cornyn voted against an amendment that would have, according to Congressional Quarterly, “eliminate[d] the prohibition in the Senate on consideration of amendments to reconciliation legislation that would cause a net increase in the deficit unless fully offset and would [have] require[d] certain amendments to reconciliation legislation to have an analysis by the Congressional Budget Office posted on the CBO’s website no later than 28 hours before a vote on such amendment.” The underlying legislation was the FY 2018 Senate budget resolution that set up reconciliation instructions for tax reform. The vote was on the amendment. The Senate rejected the amendment by a vote of 48 to 51. [Senate Vote 235, 10/19/17; Congressional Quarterly, 10/19/17; Congressional Actions, S. Amdt. 1249; Congressional Actions, S. Amdt. 1116; Congressional Actions, H. Con. Res. 71]
¶ Cornyn Voted In Favor Of Allowing Taxes To Rise On The Middle Class
2017: Cornyn Effectively Voted To Allow Taxes To Rise On The Middle Class As A Result Of Trump’s Tax Reform. In November 2017, Cornyn effectively voted against an amendment that would have, according to Congressional Quarterly, “eliminate any provisions ‘that would raise taxes on millions of middle-class taxpayers.’” The underlying bill was the Senate GOP’s tax reform bill. The vote was on a motion to commit the bill back to the Senate Finance committee. The Senate rejected the motion by a vote of 48 to 51. [Senate Vote 285, 11/29/17; Congressional Quarterly, 11/29/17; Congressional Actions, H.R. 1]
- Legislation Would Increase Taxes On 9 Percent Of Taxpayers In 2019 And More Than 50 Percent Of Americans By 2027. According to Associated Press via the CNBC, “Trump spoke as the Tax Policy Center said that while all income groups would see tax reductions, on average, under the Senate bill in 2019, 9 percent of taxpayers would pay higher taxes that year than under current law. By 2027, that proportion would grow to 50 percent, largely because the legislation's personal tax cuts expire in 2026, which Republicans did to curb budget deficits the bill would create.” [Associated Press via CNBC, 11/21/17]
2017: Cornyn Effectively Voted Against Creating A 60 Vote Point Of Order Against Legislation That Increased Taxes On Those Earning Less Than $250,000 Per Year. In October 2017, Cornyn effectively voted against an amendment that would have, according to Congressional Quarterly, “create[d] a 60-vote point of order against any reconciliation legislation that would raise taxes on taxpayers whose annual income is below $250,000.” The underlying legislation was the FY 2018 Senate budget resolution that set up reconciliation instructions for tax reform. The vote was on a motion to waive the budget act. The Senate rejected motion, effectively killing the amendment, by a vote of 47 to 51. [Senate Vote 231, 10/19/17; Congressional Quarterly, 10/19/17; Congressional Actions, S. Amdt. 1128; Congressional Actions, S. Amdt. 1116; Congressional Actions, H. Con. Res. 71]
2017: Cornyn Voted For The Final Version Of Trump’s Tax Reform Plan, Which Substantially Cut Taxes For Rich Americans And Corporations. In December 2017, Cornyn voted for the Tax Cut and Jobs Act, also known as Trump’s tax reform bill. According to Congressional Quarterly, “This Conference Summary deals with the conference report on HR 1, Tax Cuts and Jobs Act, which the House will consider Tuesday. The agreement significantly cuts corporate and individual taxes and seeks to simply the tax code, although most individual tax provisions would expire after 2025. It reduces the corporate tax from 35% to 21% and reduces taxation of so-called ‘pass-through’ businesses where profits are taxed at the individual rate. For corporate taxes it also establishes a ‘territorial’ tax system that exempts most overseas income from U.S. taxation. Most individual tax rate rates would be reduced, including by dropping the top rate from 39.6% to 37%, and it eliminates personal exemptions but nearly doubles the standard deduction so fewer taxpayers will itemize deductions.” The vote was on a motion to recede from the Senate version of the bill and agree concur with a further amendment, essentially on passage. The Senate passed the bill by a vote of 51 to 48. The House later agreed to the modified version of the bill. President Trump signed the bill into law. [Senate Vote 323, 12/20/17; Congressional Quarterly, 12/18/17; Congressional Actions, H.R. 1]
- Tax Policy Center: From 2018 – 2025, Average Taxes Fall For Most Americans, But By 2027, 53 Percent Of Americans Would Pay More. According to the Tax Policy Center, “The Tax Policy Center has released distributional estimates of the conference agreement for the Tax Cuts and Jobs Act as filed on December 15, 2017. We find the bill would reduce taxes on average for all income groups in both 2018 and 2025. In general, higher income households receive larger average tax cuts as a percentage of after-tax income, with the largest cuts as a share of income going to taxpayers in the 95th to 99th percentiles of the income distribution. On average, in 2027 taxes would change little for lower- and middle-income groups and decrease for higher-income groups. Compared to current law, 5 percent of taxpayers would pay more tax in 2018, 9 percent in 2025, and 53 percent in 2027.” [Tax Policy Center, 12/18/17]
- In 2027, 83 Percent Of The Total Tax Benefit Would Go To The Top One Percent. According to Tax Policy Center, “In 2027, the overall average tax cut would be $160, or 0.2 percent of after-tax income (table 3), largely because almost all individual income tax provisions would sunset after 2025. On average, taxes would be little changed for taxpayers in the bottom 95 percent of the income distribution. Taxpayers in the bottom two quintiles of the income distribution would face an average tax increase of 0.1 percent of after-tax income; taxpayers in the middle income quintile would see no material change on average; and taxpayers in the 95th to 99th income percentiles would receive an average tax cut of 0.2 percent of after-tax income. Taxpayers in the top 1 percent of the income distribution would receive an average tax cut of 0.9 percent of after-tax income, accounting for 83 percent of the total benefit for that year.” [Tax Policy Center, 12/18/17]
- In 2027, 86 Million Americans Would See A Tax Increase. According to ABC News, “The bill, which carries an estimated $1.5 trillion price tag over 10 years, is not expected to win any Democratic support. House Minority Leader Nancy Pelosi points to a new analysis from the non-partisan Tax Policy Center that predicts 86 million people would see a tax increase compared to current law by 2027, while 83 percent of the anticipated benefits would be reaped by the wealthiest one percent of taxpayers.” [ABC News, 12/19/17]
- Most Of The Bill’s Tax Cuts For Individuals Are Temporary, But The Corporate Ones Are Permanent. According to the Washington Post, “The core of the plan is a massive and permanent cut to the corporate tax rate, dropping it from 35 percent to 21 percent. The bill also would cut individual tax rates for all income tax levels. Families earning less than $25,000 a year would receive an average tax cut of $60, while those earning more than $733,000 would see an average cut of $51,000, according to the nonpartisan Tax Policy Center. Many of the breaks for individuals are set to expire in the coming years. Republicans set those expiration dates to comply with Senate limits on how much their legislation could add to the nation’s deficit, and they say a future Congress will extend the cuts or make them permanent.” [Washington Post, 12/20/17]
¶ Cornyn Opposed Making The Trump Tax Bill Deficit Neutral
2017: Cornyn Effectively Voted Against Requiring That The Senate GOP’s Tax Reform Bill Not Increase The Deficit. In November 2017, Cornyn voted against a motion that would have, according to Congressional Quarterly, “commit[ted] the bill to the Senate Finance Committee with instructions to report it back to the Senate in three days with changes that are within the jurisdiction of the committee and would ensure that the bill would not increase the deficit for the period of fiscal 2018 through fiscal 2027.” The underlying legislation was the Senate GOP’s tax reform bill. The vote was on a motion to commit. The Senate rejected the motion by a vote of 48 to 52. [Senate Vote 288, 11/30/17; Congressional Quarterly, 11/30/17; Congressional Actions, H.R. 1]
- Earlier That Day, The Joint Committee On Taxation Released A Dynamic Score Of The Tax Bill Saying That Even With Economic Growth, The Bill Would Add $1 Trillion To The Deficit Over Ten Years. According to Washington Post, “One of the most controversial aspects of President Trump’s tax plan is how much it costs. Republicans approved adding up to $1.5 trillion to America's debt to pay for tax cuts for businesses and individuals, but they claimed that the price tag wouldn't be nearly that high because the plan would unleash a lot more economic growth. Now Congress’s official estimators have weighed in: The Senate GOP bill would add $1 trillion to the debt even after accounting for economic growth generated by the tax cuts. The estimate from the Joint Committee on Taxation, a nonpartisan group of experts, was released Thursday afternoon as lawmakers hotly debated the tax bill on the Senate floor. The Senate GOP tax plan would cause faster economic growth -- about 0.8 percent more over the next decade, JCT found. But that amount of growth only covers about a third of the cost, far short of what is needed to have revenue-neutral tax reform, as the White House initially claimed.” [Washington Post, 11/30/17]
2017: Cornyn Voted Against Increasing The Maximum Deficit Increase Allowed For Tax Reform From $1.5 Trillion To $2.5 Trillion. In October 2017, Cornyn voted against an amendment that would have, according to Congressional Quarterly, “modif[ied] the reconciliation instructions to require the Senate Finance Committee to report changes in laws within its jurisdiction that increase the deficit by not more than $2.5 trillion for the period of fiscal years 2018 through 2027, instead of $1.5 trillion.” The underlying legislation was the FY 2018 Senate budget resolution that set up reconciliation instructions for tax reform. The vote was on the amendment. The Senate rejected the amendment by a vote of 7 to 93. [Senate Vote 241, 10/19/17; Congressional Quarterly, 10/19/17; Congressional Actions, S. Amdt. 1404; Congressional Actions, S. Amdt. 1116; Congressional Actions, H. Con. Res. 71]
2017: Cornyn Voted Against Preventing Tax Reform From Adding To The Deficit By More Than $10 Billion Per Year. In October 2017, Cornyn voted against an amendment that would have, according to Congressional Quarterly, “eliminate[d] the Senate pay-as-you-go exemption for reconciliation legislation related to taxes. It would [have] eliminate[d] the exemption that prevents reconciliation legislation from being subject to a point of order if it would increase in the deficit in excess of $10 billion in any fiscal year without offsets.” The underlying legislation was the FY 2018 Senate budget resolution that set up reconciliation instructions for tax reform. The vote was on the amendment. The Senate rejected the amendment by a vote of 47 to 51. [Senate Vote 228, 10/19/17; Congressional Quarterly, 10/19/17; Congressional Actions, S. Amdt. 1138; Congressional Actions, S. Amdt. 1116; Congressional Actions, H. Con. Res. 71]
2017: Cornyn Voted For The Final Version Of Trump’s Tax Reform Plan, Which Was Projected To Add Trillions To The Deficit. In December 2017, Cornyn voted for the Tax Cut and Jobs Act, also known as Trump’s tax reform bill. According to Congressional Quarterly, “This Conference Summary deals with the conference report on HR 1, Tax Cuts and Jobs Act, which the House will consider Tuesday. The agreement significantly cuts corporate and individual taxes and seeks to simply the tax code, although most individual tax provisions would expire after 2025. It reduces the corporate tax from 35% to 21% and reduces taxation of so-called ‘pass-through’ businesses where profits are taxed at the individual rate. For corporate taxes it also establishes a ‘territorial’ tax system that exempts most overseas income from U.S. taxation. Most individual tax rate rates would be reduced, including by dropping the top rate from 39.6% to 37%, and it eliminates personal exemptions but nearly doubles the standard deduction so fewer taxpayers will itemize deductions.” The vote was on a motion to recede from the Senate version of the bill and agree concur with a further amendment, essentially on passage. The Senate passed the bill by a vote of 51 to 48. The House later agreed to the modified version of the bill. President Trump signed the bill into law. [Senate Vote 323, 12/20/17; Congressional Quarterly, 12/18/17; Congressional Actions, H.R. 1]
- Bill Would Increase The Deficits By Nearly $1.5 Trillion And Over $1 Trillion When Accounting Economic Growth. According to Congressional Quarterly, “The Joint Committee on Taxation (JCT) estimates that the agreement would increase deficits by $1.46 trillion over 10 years. In conducting macroeconomic analyses of the House and Senate bills, JCT found that the House bill as passed would generate economic growth that results in $428 billion of additional revenues over 10 years while the Senate bill as reported would generate $408 billion in additional revenues — in both cases still leaving deficits of over $1 trillion.” [Congressional Quarterly, 12/18/17]
- Congressional Budget Office: Trump Tax Cuts Estimated To Increase Federal Deficit $1.8 Trillion Over Next Decade. “In the same April 2018 publication that contained its updated economic forecast after the enactment of the tax act, The Budget and Economic Outlook: 2018–2028, CBO estimated that the tax act would increase the primary deficit (that is, the deficit excluding the costs of servicing debt) by $1.843 trillion over the 2018–2028 period. (When this blog post mentions budget numbers, the periods described are in fiscal years.) When debt-service costs were added, the increase in the total deficit came to $2.314 trillion. (A reason for offering both estimates was that CBO does not include debt-service costs in its cost estimates for specific pieces of legislation.) Those projections do not account for macroeconomic feedback.” [Congressional Budget Office, 2/28/19]
¶ Cornyn Voted For Widespread Tax Reductions For The Rich
2017: Cornyn Voted For The Final Version Of Trump’s Tax Reform Plan, Which Substantially Cut Taxes For Rich Americans And Corporations. In December 2017, Cornyn voted for the Tax Cut and Jobs Act, also known as Trump’s tax reform bill. According to Congressional Quarterly, “This Conference Summary deals with the conference report on HR 1, Tax Cuts and Jobs Act, which the House will consider Tuesday. The agreement significantly cuts corporate and individual taxes and seeks to simply the tax code, although most individual tax provisions would expire after 2025. It reduces the corporate tax from 35% to 21% and reduces taxation of so-called ‘pass-through’ businesses where profits are taxed at the individual rate. For corporate taxes it also establishes a ‘territorial’ tax system that exempts most overseas income from U.S. taxation. Most individual tax rate rates would be reduced, including by dropping the top rate from 39.6% to 37%, and it eliminates personal exemptions but nearly doubles the standard deduction so fewer taxpayers will itemize deductions.” The vote was on a motion to recede from the Senate version of the bill and agree concur with a further amendment, essentially on passage. The Senate passed the bill by a vote of 51 to 48. The House later agreed to the modified version of the bill. President Trump signed the bill into law. [Senate Vote 323, 12/20/17; Congressional Quarterly, 12/18/17; Congressional Actions, H.R. 1]
- Tax Rates Would Start At 10 Percent; Top Rate Would Be Reduced To 37 Percent. According to Bloomberg, “Current law: Seven rates, starting at 10 percent and reaching 39.6 percent for incomes above $418,401 for singles and $470,701 for married, joint filers. Proposed: Seven rates, starting at 10 percent and reaching 37 percent for incomes above $500,000 for singles and $600,000 for married, joint filers. For joint filers: 10 percent: $0 to $19,050 12 percent: $19,050 to $77,400 22 percent: $77,400 to $165,000 24 percent: $165,000 to $315,000 32 percent: $315,000 to $400,000 35 percent: $400,000 to $600,000 37 percent: $600,000 and above For single filers: 10 percent: $0 to $9,525 12 percent: $9,525 to $38,700 22 percent: $38,700 to $82,500 24 percent: $82,500 to $157,500 32 percent: $157,500 to $200,000 35 percent: $200,000 to $500,000 37 percent: $500,000 and above.” [Bloomberg, 12/15/17]
¶ Cornyn Voted In Favor Of Permanent Corporate Tax Reductions
2017: Cornyn Voted For The Final Version Of Trump’s Tax Reform Plan, Which Substantially Cut Taxes For Rich Americans And Corporations. In December 2017, Cornyn voted for the Tax Cut and Jobs Act, also known as Trump’s tax reform bill. According to Congressional Quarterly, “This Conference Summary deals with the conference report on HR 1, Tax Cuts and Jobs Act, which the House will consider Tuesday. The agreement significantly cuts corporate and individual taxes and seeks to simply the tax code, although most individual tax provisions would expire after 2025. It reduces the corporate tax from 35% to 21% and reduces taxation of so-called ‘pass-through’ businesses where profits are taxed at the individual rate. For corporate taxes it also establishes a ‘territorial’ tax system that exempts most overseas income from U.S. taxation. Most individual tax rate rates would be reduced, including by dropping the top rate from 39.6% to 37%, and it eliminates personal exemptions but nearly doubles the standard deduction so fewer taxpayers will itemize deductions.” The vote was on a motion to recede from the Senate version of the bill and agree concur with a further amendment, essentially on passage. The Senate passed the bill by a vote of 51 to 48. The House later agreed to the modified version of the bill. President Trump signed the bill into law. [Senate Vote 323, 12/20/17; Congressional Quarterly, 12/18/17; Congressional Actions, H.R. 1]
- Most Of The Bill’s Tax Cuts For Individuals Were Temporary, But The Corporate Ones Were Permanent. According to the Washington Post, “The core of the plan is a massive and permanent cut to the corporate tax rate, dropping it from 35 percent to 21 percent. The bill also would cut individual tax rates for all income tax levels. Families earning less than $25,000 a year would receive an average tax cut of $60, while those earning more than $733,000 would see an average cut of $51,000, according to the nonpartisan Tax Policy Center. Many of the breaks for individuals are set to expire in the coming years. Republicans set those expiration dates to comply with Senate limits on how much their legislation could add to the nation’s deficit, and they say a future Congress will extend the cuts or make them permanent.” [Washington Post, 12/20/17]
- Bill Lowered The Corporate Tax Rate From 35 Percent To 21 Percent. According to Congressional Quarterly, “It cuts the corporate tax rate from 35% to 21%, allows businesses (excluding public utilities and real estate-related businesses) to immediately expense 100% of the cost of assets that are acquired and placed into service by the business (up from 50% under current law), and repeals the alternative minimum tax (AMT) for corporations.” [Congressional Quarterly, 12/18/17]
- Bill Reduced Taxes For Pass-Through Companies Via A 20 Percent Deduction. According to Vox, “Pass-through companies, like the Trump Organization, which get a new deduction reducing their tax burden. The House-Senate compromise bill allows people with pass-through income to deduct a portion of that income from their taxes; the deduction is for 20 percent of pass-through income, less than the 23 percent under the Senate-passed bill.” [Vox, 12/18/17]
- Bill Repealed The Corporate AMT. According to Bloomberg, “Current law: Applies a 20 percent rate as part of a parallel tax system that limits tax benefits to prevent large-scale tax avoidance. Companies must calculate their ordinary tax and AMT tax, and pay whichever is higher. Proposed: Repealed” [Bloomberg, 12/15/17]
¶ 2017: Cornyn Inserted A Provision In The Trump Tax Bill’s Negotiations That Benefited Pass-Through Businesses
¶ Cornyn’s Amendment Ensured Master Limited Partnerships, A Type Of Pass-Through Corporation Largely Used By Oil And Gas Firms, Secured The Same Perks As Other Pass-Through Corporations
HEADLINE: “Cornyn Pipeline Amendment Enriches GOP Lawmakers; Language Inserted As Cornyn’s Former Aide Lobbied On The Issue” [International Business Times, 12/19/17]
2017: Cornyn Introduced An Amendment To Ensure That Master Limited Partnerships Are Allowed The “Pass-Through” Tax Break In The Final Trump Tax Bill. According to the International Business Times, “Cornyn’s amendment ensures Master Limited Partnerships (MLPs), which are publicly traded partnerships that aren’t required to pay corporate income taxes, get the “pass-through” tax break in the final tax bill. Congressional Republicans have settled on a 20 percent deduction for some types of pass-through entities in their final tax bill as a way to give those businesses, which don't pay corporate taxes, some of the tax relief the bill gives to corporations, which do pay the corporate levy.” [International Business Times, 12/19/17]
2017: Cornyn Tweaked The Final Trump Tax Bill To Maintain The Status Of A Pass-Through Business For Certain Industries. According to the New York Daily News, “Sen. John Cornyn tweaked the final tax bill to benefit fossil fuel companies, Republican donors and his own congressional colleagues, according to a report Tuesday. An amendment added to the tax overhaul that Republicans are preparing to vote on as early as Tuesday afternoon would give a massive tax break to certain oil and gas companies, according to the International Business Times. The Texas Republican similarly added the measure to the Senate bill at the last minute. The measure aids energy-related firms, known as master limited partnerships, by maintaining their status as pass-through entities.” [New York Daily News, 12/19/17]
¶ Cornyn Defended The Trump Tax Bill’s Benefits To Pass-Through Corporations
2017: Cornyn Defended A Provision In The Trump Tax Cuts That Would Allow People To Deduct 20% Of Pass-Through Income From Their Taxes As An Effort To “Cobble Together The Votes We Need.” According to Vox, “Sen. John Cornyn (R-TX) on Sunday said the decision to include a provision in the Republican tax plan that would personally enrich some GOP lawmakers and President Donald Trump came from an effort to ‘cobble together the votes we need to get this bill passed.’ […] Pass-through businesses are companies organized as sole proprietorships, partnerships, LLCs, or S corporations that don’t pay the corporate income tax and instead are taxed at individual rates. Currently, the top tax rate for the top bracket of earners is 39.6 percent. The combined House-Senate bill allows people to deduct 20 percent of pass-through income from their taxes.” [Vox, 12/18/17]
Cornyn Was Pressed To Explain A Measure Added To The Trump Tax Bill That Would Allow For A Tax Deduction On Income Made From “Pass-Through” Entities. According to CNBC, “John Cornyn, the second-ranking Republican in the Senate, was pushed by newsmakers on Sunday to explain a measure in the final GOP tax bill that could benefit those with real estate income. The provision allows for a tax deduction on income made from “pass-through” entities, like real estate LLCs, including those with few or no employees. […] Pass-through entities are businesses structured so that profits “pass through” to their owners before being subject to the corporate tax. The owners then report that profit as their personal income, and pay individual tax on it. Such companies can be small businesses, S corporations or LLCs.” [CNBC, 12/17/17]
¶ Cornyn’s MLP Amendment Carved Out Billions In Tax Cuts For His “Friends” In The Texas Oil Industry
HEADLINE: “Oil And Gas Firms Got A Last-Minute Goody In Senate Tax Bill” [HuffPost, 12/5/17]
HuffPost: Cornyn’s Amendment Benefited Businesses That Are “Concentrated In The Oil And Gas Industry.” According to HuffPost, “Cornyn’s amendment benefits a special category of businesses that already get a sweet deal: they are allowed to have thousands of investors, like corporations, but are taxed as pass-throughs. They’re called publicly traded partnerships, or master limited partnerships. They are concentrated in the oil and gas industry and there aren’t very many of them, though their ranks include subsidiaries of notable brands such as Shell and Valero. The Joint Committee on Taxation estimates Cornyn’s amendment, which would specifically allow publicly traded partnerships to claim the pass-through deduction, would cost only $700 million over 10 years. (The deduction overall will cost more than $400 billion.)” [HuffPost, 12/5/17]
- Gregg Polsky, A Tax Professor At The University Of Georgia School Of Law, Likened The Tax Break For Oil And Gas Companies To Oprah Giving Everyone In Her Audience A Car. According to HuffPost, “One of several changes Senate Republicans made to their tax bill before passing it in the middle of the night last weekend would give a new tax break to oil and gas companies. […] Gregg Polsky, a tax professor at the University of Georgia School of Law, likened it to Oprah Winfrey giving everyone in her audience a car. ‘It’s like Oprah for big business,’ Polsky said. ‘You get a car, you get a car, everybody gets a car!’” [HuffPost, 12/5/17]
Cornyn’s Insertion Of Language That Would Allow Master Limited Partnerships The “Pass-Through” Tax Break Would Enrich Fossil Fuel Firms. According to the International Business Times, “Sen. John Cornyn, R-Texas, inserted language into the final tax bill that would enrich three different constituencies: fossil fuel firms, Republicans’ major campaign donors and a handful of Cornyn’s GOP congressional colleagues including Texas Sen. Ted Cruz and two other Texas lawmakers in the House. Cornyn originally added the language in an amendment to the Senate bill at the same time his former chief of staff was lobbying both the House and Senate on the tax treatment for those same oil and gas partnerships. Cornyn’s amendment ensures Master Limited Partnerships (MLPs), which are publicly traded partnerships that aren’t required to pay corporate income taxes, get the ‘pass-through’ tax break in the final tax bill.” [International Business Times, 12/19/17]
¶ Cornyn’s MLP Amendment Also Benefited Private Equity Firms And Wall Street
Cornyn Inserted A Provision In Trump’s Tax Bill That Allowed “Partners Of Giant Private Equity Firms Like Blackstone and Apollo Global Management” To Benefit From The Bill’s Tax Cut For Passthrough Businesses. According to Slate Magazine, “Senate Republicans are getting ready to pass their tax bill any minute now-but not before tacking on one last gift for their donors. […] It comes courtesy of Texas Senator John Cornyn. In essence, it lets the partners of giant private equity firms like Blackstone and Apollo Global Management, as well as a number of energy companies, take advantage of the bill's big tax cut for pass-through businesses, which aren't subject to the corporate rate. […] The passthrough cuts are specifically designed to exclude high-earning professionals in industries like law, accounting, and finance whose business ‘profits’ are really just salary by another name. Cornyn works around this by only making firms organized as ‘publicly traded partnerships’-which is to say, partnerships you can go on eTrade and buy stock in.” [Slate Magazine, 12/1/17]
- Private Equity Firms Like Blackstone Are Some Of Cornyn’s Largest Campaign Contributors. According to Slate Magazine, “So I am sure you will be shocked to learn that Cornyn's top political donors include publicly traded partnerships like Blackstone and Energy Transfer Equity. His amendment is a direct transfer of cash to some of the very particular corners of energy industry and finance that fill his campaign coffers.” [Slate Magazine, 12/1/17]
¶ Cornyn’s MLP Amendment Enriched His Colleagues, Including President Trump
HEADLINE: “GOP Tax Bill Includes A Provision That Could Enrich Trump And Republican Senators.” [CNBC, 12/17/17]
HEADLINE: “John Cornyn Doesn’t Have A Good Answer On Tax Bill Loophole That Means Millions For Corker And Trump.” [Vox, 12/18/17]
Cornyn’s Insertion Of Language That Would Allow Master Limited Partnerships The “Pass-Through” Tax Break Would Enrich Cornyn’s Republican Congressional Colleagues Including Senator Ted Cruz. According to the International Business Times, “Sen. John Cornyn, R-Texas, inserted language into the final tax bill that would enrich three different constituencies: fossil fuel firms, Republicans’ major campaign donors and a handful of Cornyn’s GOP congressional colleagues including Texas Sen. Ted Cruz and two other Texas lawmakers in the House. Cornyn originally added the language in an amendment to the Senate bill at the same time his former chief of staff was lobbying both the House and Senate on the tax treatment for those same oil and gas partnerships. Cornyn’s amendment ensures Master Limited Partnerships (MLPs), which are publicly traded partnerships that aren’t required to pay corporate income taxes, get the ‘pass-through’ tax break in the final tax bill.” [International Business Times, 12/19/17]
- Thirteen Republican Lawmakers Had Between $36 Million And $136 Million Worth Of Ownership Stakes In Real Estate Related LLC’s That Would Benefit From Cornyn’s Negotiation. According to Vox, “Sen. John Cornyn (R-TX) on Sunday said the decision to include a provision in the Republican tax plan that would personally enrich some GOP lawmakers and President Donald Trump came from an effort to ‘cobble together the votes we need to get this bill passed.’ […] IBT previously reported that the 13 GOP lawmakers sculpting the bill have between $36 million and $136 million worth of ownership stakes in real estate-related LLCs. Corker has told news outlets he didn’t know about the provision and never saw the text of the actual bill.” [Vox, 12/18/17]
The Provision Allowing For A Tax Deduction On Income Made From “Pass-Through” Entities Would Benefit Cornyn’s Colleagues Such As Senator Corker And President Trump. According to CNBC, “John Cornyn, the second-ranking Republican in the Senate, was pushed by newsmakers on Sunday to explain a measure in the final GOP tax bill that could benefit those with real estate income. The provision allows for a tax deduction on income made from “pass-through” entities, like real estate LLCs, including those with few or no employees. It could thus benefit Sen. Bob Corker, R-Tenn., and President Donald Trump, who both have real estate income.” [CNBC, 12/17/17]