Us Congress Senate Bill SB1559

Us Congress 2023-2024 Regular Session

• Introduced: 5/11/23
• Refer: 5/11/23

Caption

Book Minimum Tax Repeal Act

Impact

If enacted, SB1559 would primarily affect large corporations that are currently subject to the alternative minimum tax, making it easier for them to lower their tax burden. This change could result in a decrease in federal tax revenues, which proponents argue could spur economic growth and investment by allowing corporations to retain more capital. However, critics of the bill warn that repealing the AMT could exacerbate tax inequality and give larger corporations an unfair advantage over smaller businesses that may not benefit from such provisions.

Summary

SB1559, known as the Book Minimum Tax Repeal Act, proposes the repeal of the corporate alternative minimum tax (AMT), which is designed to ensure that corporations pay a minimum amount of tax. This legislation amends the Internal Revenue Code of 1986, specifically targeting Section 55, which outlines the conditions under which corporations pay the AMT. By eliminating the AMT, the bill seeks to adjust the tax liabilities of corporations, potentially allowing them to reduce their tax expenditures significantly.

Contention

Debate surrounding SB1559 suggests a division among legislators regarding the potential implications of repealing the AMT. Supporters of the repeal argue that the current tax structure is overly complex and places an undue burden on corporations, thereby hindering economic activity. Conversely, opponents highlight that the AMT serves as a safeguard against tax avoidance by wealthy corporations and that its repeal may defeat efforts to ensure a fair tax contribution from all entities. This divergence in opinions indicates ongoing discussions about corporate taxation and its role in equity and revenue generation.