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Associated PressDEC 13 2023
The US Treasury Department released a new 603-page proposal on how it will enforce the 15% corporate alternative minimum tax (CAMT), which was passed by Congress as part of the 2022 Inflation Reduction Act.
According to the Treasury, the new rules will force roughly 100 companies—who it claims currently pay an average of 2.6%—to start paying the 15% minimum. It predicts this will garner $20B in tax revenue in 2025 and $250B over the next decade.
While the Treasury didn't specify any of the 100 companies it plans to target, the CAMT established that companies with at least $1B in annual profits must pay the 15% minimum. This includes taxes on unrealized gains for some companies.
This rulebook is common sense, as the largest corporations in America not only play an average of 2.6%, but more than half of them pay less than 1%. The CAMT was passed with goal of making the absolute richest companies pay their fair share—which is why it only applies to those with $1B in profits, not sales. While companies will have a chance to comment on the matter, this proposal should be accepted by anyone who prioritizes main street over Wall Street.