Another year with the corporate alternative minimum tax (CAMT) has passed and we have another year of data with which to answer the question: does CAMT generate much revenue, especially compared to the amount the Joint Committee on Taxation (JCT) projected it would generate?
Using new income-tax disclosure rules, this piece examines the claim that the U.S. under-taxes its oil majors. It finds that accounting for state taxes and deferred taxes complicates the picture and that overall tax burdens are not low.
A recent report highlights profitable firms paying little or no cash federal income tax. This piece examines why cash taxes paid can be a misleading measure of tax burden and argues that GAAP tax expense offers a more accurate picture.
The corporate alternative minimum tax, enacted in 2022 as part of the Inflation Reduction Act, imposes a 15% minimum tax on “adjusted financial statement income” for certain large corporations and has multiple shortcomings. CAMT is conceptually flawed, involves very high compliance costs, does not meaningfully change corporations’ incentives, and raises little revenue.
Our analysis examines CAMT’s impact on corporate tax planning and estimated tax revenue, demonstrating that despite imposing substantial new compliance and planning costs, CAMT appears to have done little to change who pays corporate income tax or how much they pay.
Why do we tax corporations? Common answers focus on corporate wealth, infrastructure use, and market power. But these explanations may not capture the full picture. This article examines both the weak and strong justifications for corporate taxation, exploring what corporate taxes actually accomplish in the broader tax system.
Do large companies actually pay corporate taxes? Using data from over 18,000 firms across 27 countries, this analysis examines effective tax rates—what companies actually pay relative to their profits. The findings reveal a more complex picture than political rhetoric suggests, with significant variation across countries and important exceptions to common assumptions.