Treasury Proposes 15% Corporate Book-Income Tax Rules, Aiming for $250 Billion Revenue

Sep 12, 2024, 04:00 PM

The Treasury Department and the IRS have proposed long-awaited regulations to clarify the implementation and calculation of the new corporate book-income tax. This proposal aims to ensure that large, profitable companies pay a minimum of 15% in taxes. The Biden administration's initiative, detailed in a 603-page document, is expected to affect around 100 large corporations, which currently pay an average tax rate of just 2.6%. The new rules are projected to generate $250 billion in U.S. revenues over the next decade. The regulations will be applicable for the 2023 tax year, but the latest clarifications will take effect in 2024. This move is part of a broader effort to prevent large corporations from evading income taxes and is seen as a key component of President Biden's agenda. The proposal coincides with a broader reexamination of the U.S. tax code scheduled for 2025.