A group of lawmakers recently forwarded correspondence to Treasury Secretary Janet Yellen, supporting the agency’s vigorous implementation of the 15 percent corporate minimum tax (CMT).
U.S. Sens. Elizabeth Warren (D-MA), Angus King (I-ME), and Michael Bennet (D-CO) joined U.S. Rep. Donald S. Beyer (D-VA) in signing off on the letter addressing corporations regarding the Inflation Reduction Act of 2022.
“After nearly three decades of corporate tax cuts, this historic legislation will prevent the largest, most profitable corporations from paying less in taxes than small businesses and middle-class families while helping to pay down the deficit, lower energy and healthcare costs, and fight inflation,” the legislators wrote. “We look forward to continuing to partner with you in the implementation of the corporate minimum tax to limit the ability of corporations that report $1 billion or more in profits to their shareholders to minimize or eliminate their federal income tax liability. For years, many of America’s largest and most profitable corporations have paid far less than the statutory federal tax rate, or even nothing at all.”
The lawmakers cited in the correspondence in the first three years following the 2017 corporate tax cuts, FedEx, Salesforce, and 37 other corporations in the S&P 500 or Fortune 500 paid $0 in federal income taxes.
“As the leaders in Congress who championed passage of the corporate minimum tax as part of the Inflation Reduction Act, we look forward to continuing our partnership with the Administration as the tax is implemented,” the legislators concluded. “Strong implementation necessitates standing firm against requests to dilute the regulations in such a way as to undermine the clear intent of the law.”