Current:Home > Contact-usTreasury proposes rule to prevent large corporations from evading income taxes-InfoLens
Treasury proposes rule to prevent large corporations from evading income taxes
View Date:2024-12-23 15:04:35
WASHINGTON (AP) — The Biden administration on Thursday proposed a new rule that would require the largest U.S. companies to pay at least 15% of their profits in taxes.
Treasury Department officials estimate that about 100 of the biggest corporations — those with at least $1 billion in annual profits — would be forced to pay more in taxes under a provision that was included in the administration’s 2022 Inflation Reduction Act. Democratic members of Congress, including Elizabeth Warren, a senator from Massachusetts, have urged the White House to implement the tax.
Similar to the alternative minimum tax that applies to mostly wealthier individuals, the corporate AMT seeks to ensure that large corporations can’t use tax loopholes and exceptions avoid paying little or no taxes on extensive profits.
The tax is a key plank administration’s’ “agenda to make the biggest corporations and wealthiest pay their fair share,” the Treasury Department said.
Treasury officials said Thursday that the AMT would raise $250 billion in tax revenue over the next decade. Without it, Treasury estimates that the largest 100 companies would pay just 2.6% of their profits in taxes, including 25 that would pay no taxes at all.
Former President Donald Trump has promised to get rid of the corporate AMT if he is elected. As president, Trump signed legislation in 2017 that cut the corporate tax rate to 21% from 35%. He now says he supports reducing the corporate rate further, to 15%.
In a letter this summer to Treasury Secretary Janet Yellen, Warren and three congressional colleagues cited research that found that in the five years following Trump’s corporate tax cut, 55 large corporations reported $670 billion in profits, but paid less than 5% in taxes.
Treasury’s proposed rule will be open for comment until Dec. 12, the department said, and there will be a proposed hearing on the rule Jan. 16.
veryGood! (72)
Related
- 1 million migrants in the US rely on temporary protections that Trump could target
- After a hard fight to clear militants, Israeli soldiers find a scene of destruction, slain children
- The Sun Baby From the Teletubbies Is Pregnant—And Yes, You’re Old AF
- Argentina World Cup qualifier vs. Paraguay: Live stream and TV info, Lionel Messi status
- Atmospheric river to bring heavy snow, rain to Northwest this week
- New indictment charges Sen. Menendez with being an unregistered agent of the Egyptian government
- A youth football coach was shot in front of his team during practice at a park in St. Louis
- Josh Duggar to Remain in Prison Until 2032 After Appeal in Child Pornography Case Gets Rejected
- Statue of the late US Rep. John Lewis, a civil rights icon, is unveiled in his native Alabama
- 'Laugh now, cry later'? Cowboys sound delusional after 49ers racked up points in rout
Ranking
- World War II veteran reflects on life as he turns 100
- Company drops plan for gas power plant in polluted New Jersey area
- NATO will hold a major nuclear exercise next week as Russia plans to pull out of a test ban treaty
- 'Laugh now, cry later'? Cowboys sound delusional after 49ers racked up points in rout
- Ben Foster files to divorce Laura Prepon after 6 years, according to reports
- Powerball ticket sold in California wins $1.765 billion jackpot, second-biggest in U.S. lottery history
- Months on, there are few signs that Turkey plans to honor its pledge to help Sweden join NATO
- A Look Inside Hugh Jackman's Next Chapter After His Split From Wife Deborra-Lee Furness
Recommendation
-
Investigators believe Wisconsin kayaker faked his own death before fleeing to eastern Europe
-
IMF and World Bank are urged to boost funding for African nations facing conflict and climate change
-
It's the 10th year of the Kirkus Prize. Meet the winners of a top literary award
-
Powerball ticket sold in California wins $1.765 billion jackpot, second-biggest in U.S. lottery history
-
Investigation into Chinese hacking reveals ‘broad and significant’ spying effort, FBI says
-
An Israeli jewelry designer described as ‘the softest soul’ has been abducted, her family says
-
Indian official won’t confirm a reported meeting of ministers over Sikh leader’s killing in Canada
-
Abreu homers again to power Astros past Twins 3-2 and into 7th straight ALCS