Senator Elizabeth Warren of Massachusetts and her allies will propose a minimum tax on the profits of the nation’s richest companies, regardless of what they say they owe the government, as part of the $ 3.5 trillion economic and social agenda of the nation. democrats.
Ms Warren’s so-called “real corporate income tax” was a key part of her presidential campaign, and she appealed to Senator Angus King, the Independent from Maine, to help her assert her claim. view that profitable businesses should be taxed, regardless of loopholes and maneuvers. that have enabled many of them to avoid federal corporate income tax altogether.
The measure would require the most profitable companies to pay a 7% tax on the profits they report to investors – known as their annual book value – above $ 100 million. By taxing profits reported to investors, not the Internal Revenue Service, Democrats would be getting the profits that businesses like to maximize, not the profits they try to reduce for tax purposes.
âDuring the presidential campaign, Joe Biden and I disagreed on some tax policies, but there was one thing we strongly agreed on: Corporations shouldn’t be able to tell shareholders they were doing something wrong. ‘huge profits, then tell the IRS that they did not make a profit. “Ms. Warren said in an interview.
After the passage of a $ 1 trillion bipartisan infrastructure bill, which is expected this week, Democrats will look to a budget plan that will lay down the terms of a massive multibillion dollar package. dollars meant to carry the rest of their ambitions to shore up the nation’s social safety net and pay for it by raising taxes for wealthy individuals and corporations. If he authorizes the Senate, he is virtually guaranteed to do so with votes coming only from the 50 Senators who caucus with the Democrats.
That package won’t fully materialize until the fall, but the unveiling of the blueprint has prompted Democrats like Ms Warren to come forward with their contributions. While proposals on things like free preschool, community colleges, and family leave have attracted much of the attention, how to pay for them, including proposed tax increases for the rich and companies, will generate at least as much controversy. The campaign to scrutinize wealthy corporations more was bolstered by ProPublica reports that showed how wealthier Americans pay very little in taxes.
âNow is the time to put the revenues on the table to pay for our infrastructure plans – now is the time,â Ms. Warren said.
In a separate interview, Mr King responded to criticism expected from Republicans by saying: “This is not socialism, it is an attempt to have a fair tax low enough for businesses that otherwise would not pay. nothing.
An economic analysis by Gabriel Zucman and Emmanuel Saez, professors of economics at the University of California at Berkeley, who advised Ms Warren during the presidential campaign, estimated that around 1,300 state-owned companies would be affected by the policy, generating nearly of $ 700 billion between 2023 and 2032.
âWe understand that responsible legislation includes showing how it will be paid and these payments come from billionaires and giant corporations who have avoided paying their fair share for so long, âsaid Ms. Warren. “Putting in place the tax revenue part of the reconciliation package is about making the playing field a bit more level for everyone.”