Story Highlights Would require total income tax to top out at 25%
The final recommendation will determine which companies face higher or lower taxes
Source: Committee on Ways and Means
Proposed tax changes would affect most earners
WASHINGTON, D.C. — As negotiations continue over a bill to overhaul the U.S. tax code, an influential congressional panel today recommended changes to the alternative minimum tax (AMT), potentially raising taxes for millions of Americans.
The report by the Joint Committee on Taxation could affect Amazon, General Motors, Boeing, Ford, Phillips 66, Mastercard, Lockheed Martin, Procter & Gamble, and other large corporations and certain partnerships, limited liability companies (LLCs) and S corporations, according to a recent analysis. The other industries that would likely be impacted, according to Forbes, include insurance and financial services, media, technology, private-sector workers’ compensation, energy, communications, and real estate.
A statement from the committee said its recommendations will likely be changed to comply with Senate rules, and it did not mention that they could affect income-earners who have less than $100,000 in pre-tax income. The AMT is currently imposed on individuals and, to a lesser extent, on households. By applying the tax to corporations, the entire U.S. economy would be affected because corporations, when making payments to shareholders, are mostly owner-directed.
The final report on the tax bill will determine which companies will face higher or lower taxes, and the new tax could potentially cost individual taxpayers hundreds or thousands of dollars per year.