A report saying the Biden administration is pushing for a minimum corporate tax hit Amazon and other stocks.
Amazon, Qualcomm and Micron were among stocks that fell Thursday after a report said the Biden administration is pushing for a tax change that would require companies to pay a minimum tax rate of 15%. The Washington Post reported the White House is targeting this levy and is willing to temporarily set aside its broader proposal to hike the corporate tax rate to 28%. This is in an effort to win Republican support for the administration’s infrastructure package. Strategists said the proposed 15% minimum tax is not a new idea and was already sought by the administration. Republicans have opposed the Biden plan to increase the corporate tax rate from its current level of 21%, which was approved by the GOP in 2017. The report said that President Joe Biden still wants to raise the corporate tax rate, but that may be now discussed outside of the infrastructure negotiations. The minimum levy is viewed as a so-called Amazon tax, as it’s aimed at ensnaring profitable companies that pay low corporate tax rates.
