Corporate Tax

Senate Democrats Free Minimal Tax on Company Income | Brownstein Hyatt Farber fright

On Tuesday evening, Senate Finance Committee Chairman Ron Wyden (D-OR) and Sens. Angus King (I-ME) and Elizabeth Warren (D-MA) released draft legislation to introduce a minimum tax for certain large companies. The proposal is supported by Sens. Michael Bennett (D-CO), Edward Markey (D-MA) and Sheldon Whitehouse (D-RI).

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The minimum tax on corporate profits would apply to companies that were over $ 1 billion for an applicable period of three tax years. A lower threshold of $ 100 million would apply to companies with a foreign parent company. Adjustments are planned for various business credits, loss carryforwards and credits for previous year’s minimum tax payments on current taxes in subsequent years. The proposal would apply to tax years beginning after December 31, 2022.

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Since other sources of income for the Build Back Better budget reconciliation law, such as

The leaflet on the proposal on the minimum tax on corporate profits states that around 200 companies will be affected and “hundreds of billions of billions in revenue generated over ten years”. An official result of the Joint Tax Committee has not been published.

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