As the Democrats search for ways to pay off a gigantic $ 3.5 trillion budget, they have begun tossing fancy proposals on the wall in the hopes that something will stick. The latest is a revival of Senator Elizabeth Warren’s proposal for a “minimum book tax” targeting large corporations.
Despite the label of a “minimum tax,” the latest proposal from Warren’s mad scientist factory for poor tax policies would apply to all companies with sales above $ 100 million, regardless of their traditional corporate income tax liability. Each affected company would have to pay a 7 percent tax on revenues over 100 million US dollars, calculated on the so-called “book value”. Book value refers to the income companies report to their shareholders, which may differ from the amount on which they pay corporation tax.
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