Sens. Elizabeth Warren (D-Mass.), Ron Wyden (D-Ore.), and Angus King (I-Maine) announced fresh details on Tuesday about a Democratic plan to impose a 15% minimum corporate jobs tax on some of the country’s largest corporations.
This tax might be used to help fund the social spending measure Democrats are discussing, and after the idea was presented, Sen. Kyrsten Sinema (D-Ariz.), one of the moderates who had previously objected to a tax-rate rise, indicated she would support the corporate minimum tax, according to CNBC.
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 Jobs, 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 senators estimate that the tax would apply to approximately 200 U.S. firms, such as Amazon jobs, which reported $45 billion in profits over the last three years but paid “an effective tax rate of just 4.3 percent – significantly below the corporate tax rate of 21 percent.”
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.”
According to CNBC, the plan has not yet been formally authorized by House or Senate leaders, but Warren stated that she and her colleagues “extensively” discussed it with the White House, Senate Finance Committee, and Treasury Department in order to include it in the Build Back Better deal.
Source: The Week