(AmericanProsperity.com) – The Biden administration has proposed a new rule that would make the largest United States corporations pay at least fifteen percent of their profits in taxes.
Officials from the Treasury Department estimate that about one hundred of the biggest corporations would be forced to pay more in taxes under a new provision from the Inflation Reduction Act. Many Democratic members of the White House have pushed for them to implement the tax.
This proposal would be similar to the minimum tax that applies to wealthier individuals, but they seek to ensure that large corporations can’t use any tax loopholes to avoid paying their taxes on extensive profits.
The Treasury Department said that this would “make the biggest corporations and wealthiest pay their fair share” which has been a long-lasting issue where many corporations are not paying the full amount of taxes that they should.
The proposal would raise a supposed two hundred and fifty billion dollars in tax revenue over the next decade. Without the proposal, one hundred of the largest companies would only pay a little over two percent of their profits in taxes, and about twenty-five wouldn’t pay taxes at all.
Donald Trump has proposed to cut the corporate tax rate to just fifteen percent and to get rid of the corporate alternative minimum tax. He’s often proposed lowering the corporate tax rate in an event to keep corporations paying the most minimal taxes.
Treasury Secretary Janet Yellen, Elizabeth Warren, and three congressional colleagues exposed the grim aftermath of Trump’s tax cut; over fifty large corporations reported over six hundred billion dollars in profits but had paid less than five percent in taxes.
This proposal from the Treasury would keep larger corporations from getting out of paying their fair share of taxes to maintain a fairer landscape.
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