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A corporate tax increase was just passed in August.

• Supermancho 4y ago
  > The Inflation Reduction Act imposes a corporate alternative minimum tax equal to the excess of 15% of a corporation's adjusted financial statement income (AFSI) over its corporate alternative minimum tax foreign tax credit. This is not an impactful tax for any of the affected corporations. They will simply choose the method under which they pay the least and continue their tax avoidance through declared max depreciation et al, as normal. This is the USA and billionaires aren't to be inconvenienced by public policy.
  • jmyeet 4y ago
    The IRA was a fairly tepid bill (eg the cheaper medicines were very limited in scope and don't come into effect for several years) but the 15% minimum corporate tax rate was one of the less talked about but more impactful measures. How do I know this? Because of all the resistance that particular measure got from many lawmakers. So why is that impactful with the corporate tax being lowered to 21% in the Trump administration? 15% is less than 21% so it shouldn't matter right? But it does because the 2017 tax cuts effectively (in a complicated fashion) mostly gave a permanent amnesty on offshored profits. Previously, any repatriated profits were subject to the (then) 35% corporate tax rate. That bill ended that treatment. The replacement was more complicated and a much lower effeective tax rate. So the 15% minimum actually hits companies who are currently paying less than that on foreign income. It's a good measure. My comment however was referring to far stronger and likely temporarly measures, such as a windfall corporate tax of, say, 60% (or even higher).