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."
Subscribe to 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.
Sign up for Today's Best Articles in your inbox
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.
-
Today's political cartoons - March 30, 2025
Cartoons Sunday's cartoons - strawberry fields forever, secret files, and more
By The Week US Published
-
5 hilariously sparse cartoons about further DOGE cuts
Cartoons Artists take on free audits, report cards, and more
By The Week US Published
-
Following the Tea Horse Road in China
The Week Recommends This network of roads and trails served as vital trading routes
By The Week UK Published
-
The JFK files: the truth at last?
In The Spotlight More than 64,000 previously classified documents relating the 1963 assassination of John F. Kennedy have been released by the Trump administration
By The Week Staff Published
-
Supreme Court upholds 'ghost gun' restrictions
Speed Read Ghost guns can be regulated like other firearms
By Rafi Schwartz, The Week US Published
-
Trump sets 25% tariffs on auto imports
Speed Read The White House says the move will increase domestic manufacturing. But the steep import taxes could also harm the US auto industry.
By Peter Weber, The Week US Published
-
Trump allies urge White House to admit chat blunder
Speed Read Even pro-Trump figures are criticizing The White House's handling of the Signal scandal
By Peter Weber, The Week US Published
-
Waltz takes blame for texts amid calls for Hegseth ouster
Speed Read Democrats are calling for Defense Secretary Pete Hegseth and national security adviser Michael Waltz to step down
By Peter Weber, The Week US Published
-
Schumer: Did he betray the Democrats?
Feature 'Schumer had only bad political options'
By The Week US Published
-
Judge: Nazis treated better than Trump deportees
speed read U.S. District Judge James Boasberg reaffirmed his order barring President Donald Trump from deporting alleged Venezuelan gang members
By Peter Weber, The Week US Published
-
US officials share war plans with journalist in group chat
Speed Read Atlantic editor Jeffrey Goldberg was accidentally added to a Signal conversation about striking Yemen
By Rafi Schwartz, The Week US Published