The primary target: The admin is rapidly gutting a 2022 #law intended to ensure the country’s most profitable #corporations pay at least some federal income #tax. The provision, the corporate alternative minimum tax, was passed by #Democrats & signed into law by President #Biden. It sought to stop corporations from being able to report big profits to shareholders yet low tax liabilities to the federal government. It was projected to raise $222 billion over a decade.
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With little public scrutiny, the #Trump admin is handing out hundreds of billions of dollars in tax cuts to some of the country’s most profitable companies & wealthiest investors.
The #Treasury Dept & #IRS, through a series of new notices & proposed #regulations, are giving breaks to giant #PrivateEquity firms, #crypto companies, #foreign #RealEstate investors, #insurance providers & a variety of multinational #corporations.
The primary target: The admin is rapidly gutting a 2022 #law intended to ensure the country’s most profitable #corporations pay at least some federal income #tax. The provision, the corporate alternative minimum tax, was passed by #Democrats & signed into law by President #Biden. It sought to stop corporations from being able to report big profits to shareholders yet low tax liabilities to the federal government. It was projected to raise $222 billion over a decade.
But the succession of notices the #Treasury & #IRS have issued beginning in summer means the #tax could bring in a fraction of that.
The breaks come in addition to the ~$4 trillion package of tax cuts that #Trump signed into #law in July. The #legislation, passed entirely by #Republicans, heavily benefits #corporations & the #ultrawealthy. It is projected to add trillions of dollars to the federal #deficit & came with steep cuts to #healthcare for the #elderly & #FoodStamps for the poorest.
With its various #tax relief provisions, the admin is now effectively adding hundreds of billions of dollars in new breaks for big businesses & investors. The #Treasury is empowered to write rules to help the #IRS carry out tax laws passed by #Congress. But the aggressive actions of the #Trump admin raise questions about whether it is exceeding its legal #authority.
#Trump & congressional #Republicans have attacked federal workers as instruments of the “deep state,” exercising power beyond anything authorized by the #law. Now the administration is doing the same thing, several #tax experts said, undermining laws that hit the #ultrawealthy & big #corporations.
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