Washington, D.C. – Congressman Michael C. Burgess, M.D. (R-TX), urged support of his amendment to H.R. 1187 - Corporate Governance Improvement and Investor Protection Act. Had it passed, this amendment would have required businesses to publicly disclose the real cost and impact of any future tax increases.
As Prepared for Delivery:
My amendment is designed to highlight the impact that increased taxes have on companies and their workforce.
Like many Members of this body, I owned my own business prior to being elected to Congress. I know firsthand what it takes to make payroll, expand my business, and keep the lights on. Running a business takes the owner’s blood, sweat, and tears to succeed, but it also requires capital. Heavier taxes can have drastic impacts on a company’s operations, capital, and overall fiscal health.
If we are to follow the premise of this bill – that investors need the federal government to mandate the disclosure of immaterial information – then the impact of tax hikes must be included.
That is why I’m offering my amendment.
My amendment would require publicly traded companies that pay federal taxes to disclose the effects of any future U.S. corporate tax increase. Specifically, the company must calculate and disclose the difference between the amount in taxes it would have paid under laws in effect on June 1, 2021, and the actual amount paid after the tax increase.
Additionally, the company must acknowledge in writing which President signed the higher taxes into law. Finally, the company must specify the decreased amount of capital it has to pay its workforce, re-invest in the company, or return capital to its shareholders.
Let me be clear, I am not enthusiastic about Congress forcing disclosure of immaterial information, as H.R. 1187 would require. But if Congress is going to require companies to disclose other immaterial information, then its only appropriate for Congress to require the disclosure of the effects of higher taxes. Requiring disclosures of certain tax-related information will not provide the whole picture without also looking at the impacts of tax hikes.
If we’re forcing disclosure of all this tax-related information that my Democrat friends have proposed, then shouldn’t investors know exactly and plainly how a President’s tax increase bill impacts the bottom line of companies they’re invested in to grow their savings? As our economy continues to recover from the pandemic, the public deserves to know how these bad policies would impact economic growth and their livelihoods.
Since the Democrats insistent on using this legislation to push their agenda on social issues and climate change, then I urge my colleagues to support my amendment as it will tell investors the complete story.