Elizabeth Warren on Taxes

Year after year, some of the biggest corporations in the country make huge profits, but pay zero federal corporate income taxes on those profits. Elizabeth Warren Real Corporate Profits Tax will raise over a trillion dollars and make sure the biggest corporations pay their fair share. In April 2019, Warren proposed the "Real Corporate Profits Tax" which would consider as the corporate tax base profits that enterprises disclose to investors instead of profits reported to the IRS only.Year after year, some of the biggest corporations in the country make huge profits, but pay zero federal corporate income taxes on those profits. Elizabeth Warren Real Corporate Profits Tax will raise over a trillion dollars and make sure the biggest corporations pay their fair share. In April 2019, Warren proposed the "Real Corporate Profits Tax" which would consider as the corporate tax base profits that enterprises disclose to investors instead of profits reported to the IRS only. Under the proposal, announced profits would be taxed at a flat rate of 7% for every dollar above $100M, and would apply to an estimated 1,200 public corporations. The tax would limit enterprises' capacity for tax avoidance/sheltering since it would apply to overall global profits, and would not allow for reduction of the tax burden via tax deductions or credits. The tax would exist in parallel with (or, rather, on top of) the corporate income tax, and would be akin to the alternative minimum tax levied upon some individuals, imposing a minimum tax including on corporations that hitherto would have had been paying little to no in corporate income taxes. As part of her presidential campaign, Warren also proposed an annual wealth tax ("Ultra-Millionaire Tax") in January 2019. The proposal would levy a 2% annual tax on household net worth above $50M, and a 3% annual tax on net worth above $1bn. The tax would affect an estimated 75,000 households, and would yield $1.9tn or $2.75tn over a 10 year period, according to two different initial estimates. The proposal also includes provisions to combat tax evasion and avoidance, increasing the IRS budget to enforce the tax, requiring a minimum audit rate for entities subject to the tax, and levying a 40% "exit tax" on wealth above $50M to combat tax avoidance by means of renouncing US citizenship. The plan would also encourage the IRS to close loopholes in asset valuation, and increase oversight over wealth in known tax havens. Warren had previously informally voiced support for a tax on wealth during a discussion with Thomas Piketty in 2014. The 2019 proposal was in line with the recommendations of Piketty who promptly endorsed the plan.
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