The Schumer-Manchin tax-and-spend-apalooza looks worse and worse in the summer heat, and one reason is the fine print in its signature 15% minimum corporate tax.
That tax on corporate book profits is by far the biggest revenue raiser in the misnamed Inflation Reduction Act. Sens. Chuck Schumer and Joe Manchin say this provision will pull in $313 billion over 10 years. It’s a form of alternative minimum tax on companies reporting $1 billion in earnings on their financial statements, requiring businesses to pay the larger of whatever tax they’d owe under existing rules or 15% of their financial-statement, or book, earnings.