PROPOSAL TO RAISE REVENUE WITH MORE TAXES

Proposal to raise revenue with more taxes. After President Biden’s “Build Back Better” went down in flames due to Sen. Manchin’s holdout vote, it seems like another approach is in the works. President Biden has proposed a massive budget that is over $5 trillion dollars, the largest in United States history. Yet, it does very little for climate change, one of the most pressing issues of our day, and a pledge of then candidate Biden. Progressives are sure to oppose it on that issue alone. The size will surely be opposed by the Republicans also. So three key Senators have released a bill that would make some United States companies pay a minimum 15 percent tax rate on profits , in an attempt to get some revenue raising measures to get the large proposal through. Proposal to raise revenue with more taxes.

The proposal, sponsored by Senate Finance Committee Chairman Ron Wyden and Senators Elizabeth Warren and Angus King, an independent who caucuses with Democrats, would require that companies that report more than $1 billion in profits to shareholders pay at least a 15 percent tax rate–even it they qualify for lots of tax breaks. “This is, in effect, the tax on companies like Amazon that report $10 billion in profits to their shareholders, to the public, set their CEO pay based on that and then turn around to the IRS and say hey, thanks for all the loopholes, they plan to pay nothing in taxes,” said Elizabeth Warren. This minimum tax would apply to about 200 companies that don’t pay a high-enough rate under the regular corporate tax system. It could raise hundreds of billions of dollars of tax revenue over a decade.

Another proposal that should be looked at is increasing the IRS budget, over what has already been proposed. The Collection Division is seeing an increase in the number of workers, which will increase the number of audits, and IRS Wage Garnishment notices. Taxpayers who owe back taxes should take notice and get with a Tax Resolution Services firm prior to getting a IRS Collection notice. That will give them ample time to explore tax options, like the IRS Fresh Start Program, and other Tax Relief options.