US senators have proposed introducing a minimum tax for large companies, which could bring hundreds of billions of dollars to the budget. Corporations will be required to pay a minimum of 15 percent of profits if they have earned more than $ 1 billion, Bloomberg reported.
The revenues from the new tax could range from $ 300 billion to $ 400 billion over 10 years. The proposal is seen as another source of funding for US President Joe Biden’s plan. The current corporate tax rate is 21 percent. It was reduced to this level during the presidency of Donald Trump. Benefit loopholes allow companies to drop rates to much lower rates. The Democrats wanted to raise the tax rate to 28 percent, but ultimately decided to offer a 15 percent minimum income tax as a compromise. If the initiative is adopted, companies will no longer be able to use incentives to reduce the rate below 15 percent.
The co-author of the reform, Elizabeth Warren, said the tax is directed primarily at large corporations that evade payments through incentives. “This is effectively a tax for companies like Amazon, which tell their shareholders and the public about $ 10 billion in profits, set the CEO’s salary based on it, and then turn to the tax office, say hello and thanks to loopholes can pay nothing. in the form of taxes, ”the senator said.
Attempts to reform the tax system are unhappy with large companies and billionaires who will have to pay more. In October, it became known that leading US international corporations have developed a strategy to counter the economic bill proposed by the administration of US President Joe Biden. Companies such as Apple, Amazon, Microsoft and Disney intend to use lobby groups to discourage tax increases.