[This piece has been published in Restoring America to highlight why a new tax proposal from Democratic senators would hurt individual businesses and the economy as a whole.]
Last week, Sen. Joe Manchin, (D-WV), and Senate Majority Leader Chuck Schumer, (D-NY), announced a budget reconciliation deal that would raise taxes on corporations and high-income households to finance increased healthcare and climate spending. The bill, titled the “ Inflation Reduction Act (IRA) of 2022 ,” includes a 15% alternative minimum tax (AMT) on large corporations’ financial statement (“book”) income. This book minimum tax was first proposed in 2019 as part of President Joe Biden’s campaign tax plan . It has been scaled back slightly since then but remains a bad idea.
The book minimum tax proposal was designed