New details of a Democratic plan to enact a 15% minimum corporate tax on declared income of large corporations were released Tuesday by three senators, Elizabeth Warren, D-Mass., Angus King, I-Maine, and Senate Finance Committee Chair Ron Wyden, D-Ore.
The senators will propose the tax be included as a source of revenue to help fund the massive “Build Back Better” bill that Democrats are currently negotiating.
Shortly after the plan was released a key senator in those negotiations, Arizona Democrat Kyrsten Sinema, announced that she would support the corporate minimum tax, giving the proposal a major boost.
According to a release from the senators, the corporate minimum tax would:
- Apply only to companies that publicly report more than $1 billion in profits annually for a three year time period.
- Create an across-the-board 15% minimum tax on those profits.
- Preserve “the value of business credits – including R&D, clean energy, and housing tax credits – and include some flexibilities for companies to carry forward losses, utilize foreign tax credits, and claim a minimum tax credit against regular tax in future years.”