Washington, U.S. | Xinhua | Three key U.S. Democratic senators on Tuesday released a proposal for a minimum tax on corporate profits to help pay for President Joe Biden’s economic agenda.
The proposal, released by Senate Finance Committee Chairman Ron Wyden and Senators Elizabeth Warren and Angus King, would create a 15-percent minimum tax on the profits that companies report to shareholders. It would apply to about 200 companies that report over 1 billion U.S. dollars in profits, according to a fact sheet from the senators.
“Establishing the Corporate Profits Minimum Tax would not only put an end to profitable corporations getting away with paying zero (or less) in taxes, it would also generate revenue needed to invest in child care, clean energy jobs, and more – investments that make American companies more competitive and our economy more resilient,” the fact sheet said.
This proposal would generate hundreds of billions in revenue over 10 years, it said.
The proposal came as Democrats are hoping to reach an agreement on Biden’s social spending plan this week. Democrats have agreed to cut the price tag of the plan from the original 3.5 trillion dollars to about 2 trillion dollars in order to win support from key moderate Democratic senators.