The millionaire’s surtax aims to raise taxes on wealthy Americans without touching rates. The alternative minimum tax for corporations aspires to accomplish a similar aim by raising money from profitable corporations without crossing Sinema’s line on rates. In short, it imposes a 15 percent minimum on firms that make more than $1 billion in “book” income, which is money they report to shareholders.
Motivating Democrats is a vast body of research showing that some of the country’s most recognizable brands pay nothing in federal income taxes. The Institute on Taxation and Economic Policy, a progressive think tank, earlier this year found that 55 corporations with more than $40 billion in profits paid $0 and, in some cases, earned federal rebates in the process. Read more
