Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB4098

Introduced
4/10/24  

Caption

Corporate Tax Dodging Prevention Act

Impact

The proposed act directly impacts how foreign corporations are taxed, shifting toward a more equitable tax system that aligns their tax responsibilities with those of domestic businesses. By establishing clearer and more robust tax obligations for these entities, it aims to enhance revenue generation for the government while discouraging practices that exploit tax loopholes. Moreover, the bill seeks to prevent potential mismatches in tax obligations through measures like repeal of the 'check-the-box' rules for certain foreign entities, which could mitigate tax avoidance strategies.

Summary

SB4098, known as the Corporate Tax Dodging Prevention Act, proposes significant amendments to the Internal Revenue Code of 1986. The primary objective of this bill is to revise the tax treatment for foreign corporations and reinstate a progressive corporate tax rate structure. This new framework would apply a tiered tax rate based on taxable income, with rates ranging from 15% for the first $50,000 of income to up to 35% for income exceeding $10 million. A significant aspect of the bill is aimed at minimizing avenues for tax avoidance by foreign corporations operating within the United States.

Contention

The discussions around SB4098 indicate notable contention regarding the implications of the bill for international competitiveness and U.S. businesses. Critics argue that enhanced fiscal responsibilities for foreign corporations may reduce their incentive to operate in the United States, potentially leading to job losses and economic downturns. Conversely, proponents contend that these adjustments will level the playing field for domestic companies, ensuring that all businesses contribute fairly to the nation’s economy. Additionally, concerns have been raised regarding the complexities introduced with new regulations, which could be burdensome for multinational corporations.

Companion Bills

US HB7933

Same As Corporate Tax Dodging Prevention Act

Previously Filed As

US HB7933

Corporate Tax Dodging Prevention Act

US HB2423

Unfair Tax Prevention Act

US HB8268

Stop Corporate Inversions Act of 2024

US HB7024

Tax Relief for American Families and Workers Act of 2024

US HB5988

United States-Taiwan Expedited Double-Tax Relief Act

US SB3803

Price Gouging Prevention Act of 2024

US HB7390

Price Gouging Prevention Act of 2024

US SB4809

Angel Tax Credit Act

US SB4642

Ending Corporate Greed Act

US HB8797

Ending Corporate Greed Act

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