Democratic presidential candidate Elizabeth Warren is proposing a new 7% tax on the largest, most profitable U.S. companies, a move that would increase corporate tax collections by about 30% over the next decade.
Her Real Corporate Profits Tax, projected to raise $1 trillion over a decade, would apply to profits above $100 million each year, and it would be based on the world-wide posttax income companies report on their financial statements. The new levy, affecting about 1,200 companies, would come on top of the existing income tax system.
“We need corporate tax reform, but we also need to recognize that enormous companies with armies of lawyers and accountants will always try to exploit any deductions and exemptions that remain,” Ms. Warren wrote in announcing the proposal. “To raise the revenue we need—and ensure every corporation pays their fair share—we need a new kind of tax that big companies can’t get around.”
The corporate-tax proposal is the latest sweeping policy idea from Ms. Warren, a Massachusetts senator who has also proposed an annual wealth tax on the richest Americans, universal child care and $500 billion in new spending on affordable housing.
Ms. Warren’s latest proposal would mark a fundamental change in how the U.S. taxes corporations. It would raise taxes on some companies that make significant global profits but, for a variety of reasons, may pay relatively little to the U.S. government under the current tax law. CONTINUE AT SITE
