Treasury proposes rule to prevent large corporations from evading income taxes
The Biden administration has proposed a new rule that would require the largest U.S. companies to pay at least 15% of their profits in taxes
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.
