Review of tax provisions of Democrats’ budget bill

Lisa Desjardins:

William, few things before Congress directly affect our bank accounts, who are rich and who are poor, more than tax policy.

These changes in the bill are significant. Here’s what he will do. First, it would create a minimum tax of 15% on large corporations. Certain hedge funds and investment firms would be exempt. Also new is a 1% tax on stock buybacks that companies use to boost their stock prices.

What will all of this actually mean?

To find out more, I am joined by Michael Graetz. He is a professor of tax law at Columbia University and co-author of “The Wolf at the Door: The Menace of Economic Insecurity and How to Fight It”.

First, Professor Graetz, I want to establish some baselines with our viewers.

Let’s talk about the corporate tax change. Here’s what we know about it. This minimum tax of 15% would be aimed at companies earning more than a billion dollars a year. It would be on average over three years. The Joint Committee on Taxation says it will affect around 150 businesses and net more than $200 billion.

That’s a lot of numbers. But, Michael Graetz, how important do you think that is?


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