Treasury Releases Proposed Rule Requiring US Corporations to Pay Higher Minimum Tax

Treasury Department and IRS officials released new draft rules on Sept. 12 that could raise taxes on profits generated by “around 100” of the largest corporations. The Corporate Alternative Minimum Tax (CAMT), signed into law as part of the Inflation Reduction Act, would require companies to pay at least 15 percent of adjusted financial statement income (AFSI) for taxable years beginning after Dec. 31, 2022. This would “increase tax fairness” and “make the biggest corporations and wealthiest pay their fair share,” the Treasury said in a statement. Without the CAMT, these corporations would have paid an average effective federal tax rate of 2.6 percent, according to the Treasury. Sixty percent of CAMT payers would have paid a rate of 1 percent or less, and a quarter would have had an effective tax rate of zero....