{"id":131311,"date":"2021-10-27T14:46:04","date_gmt":"2021-10-27T21:46:04","guid":{"rendered":"http:\/\/new.thepinetree.net\/?p=131311"},"modified":"2021-10-27T14:46:04","modified_gmt":"2021-10-27T21:46:04","slug":"senators-warren-king-and-wyden-announce-updated-proposal-to-prevent-the-biggest-and-most-profitable-corporations-from-paying-nothing-in-federal-taxes","status":"publish","type":"post","link":"https:\/\/new.thepinetree.net\/?p=131311","title":{"rendered":"Senators Warren, King, and Wyden Announce Updated Proposal To Prevent The Biggest And Most Profitable Corporations From Paying Nothing In Federal Taxes"},"content":{"rendered":"

Washington, DC…Today, United States Senator Elizabeth Warren (D-Mass.), Senator Angus King (I-Maine), and Senate Finance Committee Chair Ron Wyden (D-Ore.) announced an updated proposal that prevents America\u2019s largest corporations from paying nothing in federal taxes. The Corporate Profits Minimum Tax<\/em>\u00a0is a new corporate minimum tax that would strengthen our economy and create a fairer tax system. The lawmakers will include the proposal as a pay-for in the Build Back Better plan. The proposal is cosponsored by Senators Michael Bennet (D-Colo.), Edward J. Markey (D-Mass.), and Sheldon Whitehouse (D-RI).<\/p>\n

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Senators Warren and King, along with Representative Don Beyer (D-Va.), previously introduced the\u00a0Real Corporate Profits Tax Act<\/em>\u00a0<\/a>(S. 2680 \/ H.R. 4940), and have engaged extensively with Chair Wyden, the White House, and the Treasury Department to develop this updated proposal for inclusion in the Build Back Better bill. President Biden\u00a0proposed a minimum tax like this one<\/a>\u00a0as part of his Build Back Better agenda.<\/p>\n

\u201cGiant corporations have been exploiting tax loopholes for too long, and it\u2019s about time they pay their fair share to help run this country, just like everyone else. The Corporate Profits Minimum Tax would end corporate double dealing and ensure companies pay something in taxes when they report billions in profits to their shareholders. I\u2019m glad to have worked alongside Senator King and Chair Wyden, with the support of President Biden, to announce this proposal so that we can raise essential revenue needed to invest in families and our economy,\u201d\u00a0said Senator Warren.\u00a0<\/strong><\/p>\n

\u201cIn 1965, corporations paid roughly 4% of the nation\u2019s GDP in state and federal income tax. Today, that rate is only 1%,\u201d\u00a0said Senator King.\u00a0<\/strong>\u201cThis massive decline has contributed to the nation\u2019s rising debt and threatened basic public sector services Americans rely upon. Corporations should not be able to access America\u2019s wealthy consumer market, talented labor pool, and other benefits without paying to support the conditions that make the U.S. the world\u2019s premier place to do business \u2013 but many profitable, U.S.-based corporations pay zero federal corporate income tax. Our proposal is about simple fiscal sense and common fairness, creating a reasonable floor on tax payments to make sure profitable corporations with profits over $1 billion pay their fair share.\u201d<\/p>\n

\u201cThe most profitable corporations in the country are often the worst offenders when it comes to paying their fair share. Year after year they report record profits to shareholders and pay little to no taxes. Our proposal would tackle the most egregious corporate tax dodging by ensuring the biggest companies pay a minimum tax,\u201d\u00a0said Chair Wyden.\u00a0<\/strong><\/p>\n

Currently, the U.S. tax code allows large corporations to pay little or no tax because they are able to exploit a host of loopholes, deductions, and exemptions to drive down their tax liability. While these companies report billions in profits, they often pay no income tax to the IRS and leave hardworking families holding the bag.<\/p>\n

For example, over the last three years, Amazon reported\u00a0$45 billion<\/a>\u00a0in profits, including a record $20 billion last year as families struggled through the pandemic. But the effective tax rate it paid on those profits was just 4.3% \u2013 well below the 21% corporate tax rate. In fact, in 2018, Amazon didn’t pay\u00a0any\u00a0<\/em>federal income tax at all. Amazon isn’t alone: between 2008 and 2015,\u00a040%<\/a>\u00a0of our biggest companies paid zero or less in federal taxes in at least one year, even while they were telling their shareholders they were wildly profitable. This trend continued last year throughout the pandemic, with\u00a055 companies<\/a>\u00a0that reported a cumulative total of $40 billion in pretax income receiving a net $3.5 billion\u00a0back<\/em>\u00a0from the government in rebates.<\/p>\n

The Corporate Profits Minimum Tax would ensure companies that report over $1 billion in profits to shareholders pay at least a 15% tax rate on those gigantic profits. Based on estimates for similar proposals, the Corporate Profits Minimum Tax would generate hundreds of billions in revenue over ten years. Establishing the Corporate Profits Minimum Tax would not only put an end to profitable corporations getting away with paying zero (or less) in taxes; it would also generate revenue needed to invest in child care, clean jobs, and more \u2013 investments that make American companies more competitive and our economy more resilient.<\/p>\n

Specifically, the Corporate Profits Minimum Tax would:<\/p>\n