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.
Create an account with the same email registered to your subscription to unlock access.
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 is night editor for TheWeek.com. Her writing and reporting has appeared in Entertainment Weekly and EW.com, The New York Times, The Book of Jezebel, and other publications. A Southern California native, Catherine is a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
-
Quiz of The Week: 13 - 19 April
Puzzles and Quizzes Have you been paying attention to The Week's news?
By Rebecca Messina, The Week UK Published
-
'Colleges warn of punishment for disruptions'
Today's Newspapers A roundup of the headlines from the US front pages
By The Week Staff Published
-
Peter Murrell: Sturgeon's husband charged over SNP 'embezzlement' claims
Speed Read SNP expresses 'shock' as former chief executive rearrested in long-running investigation into claims of mishandled campaign funds
By Arion McNicoll, The Week UK Published
-
Peter Murrell: Sturgeon's husband charged over SNP 'embezzlement' claims
Speed Read SNP expresses 'shock' as former chief executive rearrested in long-running investigation into claims of mishandled campaign funds
By Arion McNicoll, The Week UK Published
-
Mark Menzies: Tories investigate MP after 'bad people' cash claims
Speed Read Fylde MP will sit as an independent while party looks into allegations he misused campaign funds on medical expenses and blackmail pay-out
By Arion McNicoll, The Week UK Published
-
Why Johnson won't just pass Ukraine aid
Speed Read The House Speaker could have sent $60 billion in military aid to Ukraine — but it would have split his caucus
By Peter Weber, The Week US Published
-
Sudan on brink of collapse after a year of war
Speed Read 18 million people face famine as the country continues its bloody downward spiral
By Peter Weber, The Week US Published
-
Trump's first criminal trial starts with jury picks
Speed Read The former president faces charges related to hush money payments made to adult film star Stormy Daniels
By Peter Weber, The Week US Published
-
How will Israel respond to Iran's direct attack?
Speed Read Iran’s weekend attack on Israel could escalate into a wider Middle East war
By Peter Weber, The Week US Published
-
Making sense of FISA's strange bedfellows in Congress
The Explainer How a controversial intelligence gathering law is bringing progressive Democrats and privacy hawk Republicans together
By Rafi Schwartz, The Week US Published
-
US, Israel brace for Iran retaliatory strikes
Speed Read An Iranian attack on Israel is believed to be imminent
By Peter Weber, The Week US Published