"The Trump administration is quietly waging an all-out regulatory war on a Biden-era corporate tax that aimed to prevent large companies from dodging their tax liabilities while reporting huge profits. The corporate alternative minimum tax (CAMT) was enacted as part of the Inflation Reduction Act, Democratic legislation that former President Joe Biden signed into law in 2022. The CAMT requires highly profitable US corporations to pay a tax of at least 15% on their so-called book profits, the figures reported to shareholders."
"As the Institute on Taxation and Economic Policy has explained: "Many of the special breaks that corporations use to avoid taxes work by allowing companies to report profits to the IRS that are much smaller than their book profits. Corporate leaders prefer to report low profits to the IRS (to reduce taxes) and high profits to the public (to attract investors).""
The corporate alternative minimum tax (CAMT) requires highly profitable US corporations to pay at least 15% on book profits reported to shareholders. Many tax breaks allow corporations to report much smaller profits to the IRS than to investors, enabling leaders to report low taxable income while showing high public profits. Since January, the administration has issued guidance and regulatory proposals that weaken CAMT enforcement. The policy shift benefits corporate giants and wealthy private equity investors. The administration's tax relief provisions effectively add hundreds of billions of dollars in new breaks for big businesses and investors, alongside existing large tax cuts. Low-income programs face simultaneous attacks.
Read at Truthout
Unable to calculate read time
Collection
[
|
...
]