Last week, the House of Representatives approved a Minimum Corporate Income Tax (CPMT) for large companies.
The report “Tax Dodgers: How Billionaire Corporation Avoid Paying Taxes and How to Fix it”, prepared by Democratic Senator Elizabeth Warren and corroborated by the Institute for Fiscal and Economic Policy (ITEP), details that the Large corporations that have earnings of more than 1,000 million dollars, would pay a 15% Income Tax (ISR) levy.
The new tax would generate the United States government some 319,000 million dollars over the next decade, according to the report presented.
“Multi-billion dollar corporations have had a clear path in America for far too long. It’s time to stop allowing big business to cheat the system – they have to pay taxes like everyone else, ”Sen. Warren said recently.
In the same way, Matt Gardner, a member of the tax institute, explained that the idea of the new tax is that no longer matter how many tax loopholes a company exploits, it will have to pay taxes equivalent to, at least, 15% of the profits it reports to its shareholders.
The revenue the government is letting go
If Amazon, Bank of America, Facebook, FedEx, General Motors, Google, Netflix, PayPal, T-Mobile, Verizon and 60 other companies in the United States would have been taxed with the Minimum Corporate Income Tax (CPMT) ) would have paid an additional $ 22 billion in 2020.
In Warren’s words, the CPMT would help end tax traps and raise billions in revenue to invest in American families.
The United States Tax Code allows large companies to pay minimal or no ISR because the law firms that some even hire, “exploit the loopholes”, deductions and exemptions to reduce their tax obligations.
It is important to clarify that the CPMT is a point and apart from the Global Minimum Tax of 15% for multinational companies that recently adopted the members of the Organization for Economic Cooperation and Development (OECD).
The US Senate is discussing the “Build Back Better” plan, for 1.75 billion dollars destined to finance social welfare programs (such as the Tax Child Credit) or campaigns to combat climate change, hence the importance of the new lien is approved.
Tax is consistent with Biden government
The tax that is planned to apply for the next fiscal year seeks that large corporations “pay what is fair.”
Joe Biden, mentioned in his speech of the first 100 days of government that 55 companies of the Fortune 500 list, a list revealed annually that presents the largest US companies that are listed on the stock market, did not pay taxes or were benefited by refunds derived from the tax reform that former President Donald Trump enacted in 2017.
The ITEP identified 55 large US corporations that did not pay ISR in 2020. The indicated companies would have to have paid a total of 8.5 billion dollars together. However, they received $ 3.5 billion in tax breaks.
The richest rich
At the same time, in June, the ProPublica organization confirmed, in a report, that the 25 richest Americans, including Jeff Bezos, Michael Bloomberg and Elon Musk, paid little and sometimes nothing in taxes between 2014 and 2018.
Said report was based on tax data from the Internal Revenue Service.