On September 12, 2024, the Biden administration released draft rules for a new corporate alternative minimum tax set at 15% for large companies reporting over $1 billion in annual average adjusted financial statement income. This proposal targets approximately 100 large, profitable companies that currently pay little to no federal taxes, including major corporations like Amazon, AT&T, and Berkshire Hathaway [77f19b4f]. The Treasury Department estimates that this tax could generate about $250 billion in revenue over the next decade [77f19b4f].
This initiative is part of a broader reexamination of tax laws scheduled for 2025, following the provisions established in the 2022 Inflation Reduction Act, which also includes clean energy tax credits [e80ba64b]. Public comments on the proposed rules will be accepted until December 12, 2024, with a hearing planned for January 16, 2025 [77f19b4f].
Critics, including major lobbying groups, have raised concerns about the complexity of the tax code and potential negative impacts on job growth [77f19b4f]. The U.S. Chamber of Commerce has warned that increasing the corporate tax rate from the current 21% could hinder economic growth and adversely affect consumers and workers [f4d499f6].
As the political landscape evolves, the upcoming 2024 elections are expected to significantly influence the future of U.S. tax policy. Former President Donald Trump has been advocating for a reduction of the corporate tax rate to 15%, while President Biden's administration pushes for this new minimum tax [8b8cfff7]. Amid these discussions, a recent survey indicated a decline in optimism among CPA executives regarding the economy, with only a quarter expressing positive outlooks, down from a third previously [513eba09]. The private sector's job growth has also slowed, adding only 99,000 jobs in August, while annual pay growth remains steady at 4.8% [513eba09]. As businesses navigate these economic uncertainties, mergers and acquisitions continue to shape the accounting landscape, with firms like EisnerAmper merging with Tighe, Kress & Orr, and the Bonadio Group executing 22 mergers over the past 27 years [513eba09].