Senate Finance Chairman Wyden introduces “corporate profits minimum tax”

Updated proposal to impose a minimum tax on corporations based upon financial statement profits

Proposal to impose a minimum tax on corporations based upon financial statement profits

U.S. Senate Finance Committee Chairman Ron Wyden (D-OR), along with Senators Warren (D-MA) and King (I-ME), today released an updated proposal to impose a minimum tax on corporations based upon financial statement profits.

The “corporate profits minimum tax” would:

  • Impose a 15% tax on corporations with three-year average financial reporting profits greater than $1 billion
  • Be offset by general business credits
  • Allow for minimum tax credits to be carried forward to offset regular tax
  • Apply to tax years beginning after December 31, 2022

Documents

KPMG observation

Congress is in the process of negotiating tax increases to offset the costs of the Build Back Better Act reconciliation bill. Senators Wyden, Warren, and King have indicated that they are “pushing to include” the proposal in that legislation.

 

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