Elizabeth Warren targets corporate profits with new 7% surtax proposal

Authored by cnbc.com and submitted by alt213
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Elizabeth Warren, the economic policy pacesetter in the Democratic presidential primary field, wants to raise $1 trillion in government revenue from a new 7% surtax on profits of the largest corporations.

What the Massachusetts senator dubs the "Real Corporate Profits Tax" would apply to worldwide profits exceeding $100 million. The purpose, she says, is to bolster government coffers by preventing corporate giants from exploiting loopholes to avoid federal taxation following the large tax cut enacted by President Donald Trump and a GOP-controlled Congress in December 2017.

"It will make our biggest and most profitable corporations pay more and ensure that none of them can ever make billions and pay zero taxes again," Warren wrote in a Medium post published Thursday morning. "To raise the revenue we need — and ensure every corporation pays their fair share — we need a new kind of tax that big companies can't get around."

The Trump tax cut, following entreaties from corporations for a more globally competitive U.S. system, reduced the top corporate rate to 21% from 35%. But deductions remaining in the IRS code allow some large corporations to reduce their effective rates far below that — in some cases all the way to zero.

Read more: Elizabeth Warren's 2020 campaign raises $6 million in the first quarter

Watch: How Amazon paid $0 federal income tax in 2018

ptwonline on April 11st, 2019 at 16:02 UTC »

How long before we hear "This hurts the mom & pop stores" from conservatives.

BiBoFieTo on April 11st, 2019 at 13:50 UTC »

2021 - Every large American corporation reports profits of $99 million

qcezadwx on April 11st, 2019 at 13:28 UTC »

Well at least with Warren you know she has top-tier research to back up her recommendations. These aren't pipe dreams--they are gold standards, best practices, quality assurance.