Senate Democrats release updated corporate minimum tax proposal


Sen. Elizabeth Warren (D-Mass.), Sen. Ron Wyden (D-Ore.), and Sen. Angus King (I-Maine) on Tuesday released new details about a Democratic plan to impose a 15 percent minimum corporate tax on some of the country's biggest companies.
This tax could be used to help fund the social spending bill Democrats are negotiating, and after the plan was unveiled, Sen. Kyrsten Sinema (D-Ariz.), one of the moderates who had previously objected to a tax-rate increase, said she would support the corporate minimum tax, CNBC reports.
As their plan stands now, the corporate minimum tax would apply to companies that publicly report more than $1 billion in profits annually over three years, creating a 15 percent minimum tax on those profits. There would be business credits, the senators said in a press release, "including R&D, clean energy, and housing tax credits," as well as "some flexibilities for companies to carry forward losses, utilize foreign tax credits, and claim a minimum tax credit against regular tax in future years."
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The senators estimate the tax would apply to roughly 200 U.S. corporations, like Amazon, which reported $45 billion in profits over the last three years but paid, they noted, "an effective tax rate of just 4.3 percent — well below the 21 percent corporate tax rate."
Wyden, chair of the Senate Finance Committee, said in a statement that "the most profitable corporations in the country are often the worst offenders when it comes to paying their fair share. Year after year they report record profits to shareholders and pay little to no taxes. Our proposal would tackle the most egregious corporate tax dodging by ensuring the biggest companies pay a minimum tax."
The proposal has not yet been formally approved by House or Senate leaders, CNBC reports, but Warren said she and her colleagues "extensively" discussed the matter with the White House, Senate Finance Committee, and the Treasury Department to get it included in the Build Back Better deal.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
-
Could Democrats lose the New Jersey governor’s race?
Today’s Big Question Democrat Mikie Sherrill stumbles against Republican Jack Ciattarelli
-
Trump DOJ indicts New York AG Letitia James
Speed Read New York Attorney General Letitia James was indicted as Trump’s Justice Department pursues charges against his political opponents
-
Judge blocks Trump’s Guard deployment in Chicago
Speed Read The president is temporarily blocked from federalizing the Illinois National Guard or deploying any Guard units in the state
-
Gaza peace deal: why did Trump succeed where Biden failed?
Today's Big Question As the first stage of a ceasefire begins, Trump’s unique ‘just-get-it-done’ attitude may have proven pivotal to negotiations
-
Trump urges jail for Illinois, Chicago leaders
Speed Read The Texas National Guard begin operations in the Chicago area
-
Bondi stonewalls on Epstein, Comey in Senate face-off
Speed Read Attorney General Pam Bondi denied charges of using the Justice Department in service of Trump’s personal vendettas
-
Court allows Trump’s Texas troops to head to Chicago
Speed Read Trump is ‘using our service members as pawns in his illegal effort to militarize our nation’s cities,’ said Gov. J.B. Pritzker
-
Judge bars Trump’s National Guard moves in Oregon
Speed Read In an emergency hearing, a federal judge blocked President Donald Trump from sending National Guard troops into Portland