Biden Administration Proposes 15% Minimum Tax on Large Corporations

The new rules aim to close loopholes that allow major companies to pay minimal taxes, potentially raising $250 billion over a decade.

The Treasury Department released a 600-page draft detailing the corporate alternative minimum tax (CAMT) as part of the 2022 Inflation Reduction Act.
The 15% minimum tax targets around 100 large firms with profits exceeding $1 billion, which currently pay an average effective tax rate of 2.6%.
Deputy Treasury Secretary Wally Adeyemo emphasized the tax's role in ensuring fairness by leveling the playing field for smaller businesses.
The proposed rules are expected to raise $250 billion over ten years, with some companies already signaling new tax liabilities in their filings.
A public comment period will run until December 12, with a hearing scheduled for January 16, 2025, to finalize the rules.