Washington, D.C. November 18, 2021 – Today, Senator Elizabeth Warren (D-Mass.) released a new staff report, “Tax Dodgers: How Billionaire Corporations Avoid Paying Taxes and How to Fix It.” Currently, the U.S. tax code allows large corporations to pay little to no taxes because they are able to exploit a host of loopholes, deductions, and exemptions to drive down their tax liability. While these companies report billions in profits, they often pay no income tax to the IRS and leave hardworking families holding the bag. The new report examines the exploitation of the tax system by 70 of America’s wealthiest and most profitable corporations, and how Senators Warren, Angus King (I-Maine), and Ron Wyden’s (D-Ore.) Corporate Profits Minimum Tax (CPMT) proposal would improve tax fairness and help crack down on corporate tax dodgers.
“Billionaire corporations have gotten a free ride in America for too long. It’s time to stop letting giant corporations cheat the system — they should pay taxes just like everyone else. My Corporate Profits Minimum Tax would help put an end to tax-rigging schemes and raise billions in revenue so we can make real investments in American families,” said Senator Warren.
Last month, Senators Warren, King, and Wyden announced their CPMT plan, developed in coordination with the White House and Treasury Department after Warren and King introduced their Real Corporate Profits Tax earlier this year. The CPMT would end tax-rigging schemes by requiring giant companies that report more than $1 billion in profits to pay a minimum 15% tax rate. In addition to making the tax code fairer, the CPMT would generate $319 billion over the next decade to invest in the American economy and support America’s workers and families. The CPMT is a core revenue component of President Biden’s Build Back Better Act, and requiring these companies to pay their fair share in taxes will help fund transformative investments in universal pre-K, child-care, paid leave, tax credits for families, expanded Medicare coverage, and more. The proposal is supported by over 70% of Americans.
- Corporations are making billions of dollars and paying next to nothing in taxes. At least 70 public corporations made over $1 billion in global profits in 2020, while paying less than 15% of those profits in taxes. Some companies have even received net tax refunds from the U.S. government despite claiming billions in profits.
- The Corporate Profits Minimum Tax will generate almost $320 billion in revenue. A 15% effective tax rate would have generated $22 billion from the 70 companies examined in this report in 2020 alone. The nonpartisan Joint Committee on Taxation estimates that the CPMT will generate $319 billion over ten years. This revenue will help pay for critical investments in American workers and families, which is why over 70% of Americans support the proposal.