Senior Democratic senators have laid out detailed plans for a minimum tax on corporate profits for 200 of America’s biggest companies, as lawmakers from Joe Biden’s party scramble to salvage a deal on his ambitious Build Back Better agenda.
The new proposal from progressive Elizabeth Warren of Massachusetts, Angus King of Maine and Ron Wyden from Oregon, who chairs the Senate finance committee, is intended to close tax loopholes and raise revenue for the Treasury.
The lawmakers said the measure, which is expected to apply to 200 corporations, would require companies that report more than $1bn in profits to shareholders pay at least 15 per cent of those back in taxes. The measure is expected raise between $300bn and $400bn over a 10-year period, they said.
The tax is designed to offset the cost of Biden’s legislative plans to pour federal funds into early childhood education, public healthcare and clean energy.
Kyrsten Sinema, the Democratic senator from Arizona who opposed earlier proposals to increase the corporation tax rate, endorsed the proposal. But Joe Manchin of West Virginia, the other Democratic holdout in the senate, did not comment it.
Democratic lawmakers are rushing to clinch a deal on Biden’s legislative agenda before the president flies to Europe for the G20 and COP26 meetings on Thursday.
Thanks for reading FirstFT Americas. Here is the rest of today’s news — Gordon
Five more stories in the news
1. Big Tech earnings Google’s parent company Alphabet and Microsoft both posted strong revenue growth in the third quarter, helped by a boom in cloud computing during the pandemic. Together, the duo posted revenue of $110.4bn — a combined growth of 33 per cent compared with last year’s third quarter.
2. ‘Meme’ coin seeks to tap crypto craze A digital token named after Elon Musk’s dog has launched an advertising campaign on London’s public transport system. Ads with the slogan “Missed Doge? Get Floki” have appeared on the underground in a campaign that will be funded by a “tax” on new buyers.
3. Gazprom offered Moldova a gas deal in exchange for weaker EU ties The Russian state gas company has proposed that the former Soviet republic adjust its free trade deal with the EU and delay energy market reforms agreed with Brussels in exchange for cheaper gas for the country.
4. Rising prices a headache for Italy-bound Biden The US president is due to discuss energy prices at the G20 summit in Rome this weekend, with rises in the cost of motor fuel and heating putting pressure on his administration.
5. Evergrande founder loses $25bn in Xi crackdown The net worth of Hui Ka Yan, founder of the debt-stricken Evergrande real estate group, declined by $25bn over the past year. According to the annual Hurun Rich List, published today, Hui’s net worth has fallen almost 70 per cent to $11.3bn since 2020, making him China’s 70th richest person.
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The day ahead
UK Budget day In the UK, Chancellor Rishi Sunak is expected to say the British economy has performed better than expected as he lays out the government’s tax and spending plans for the next year.
EU banking rules The European Commission is expected to reveal its plan to implement the final part of global banking rules. Draft plans suggest Brussels is considering giving European banks a two-year extension to an internationally agreed deadline.
FT launches ‘Working It’ podcast Every Wednesday, join host Isabel Berwick for expert analysis and water cooler chat about ahead-of-the-curve trends and the big ideas shaping work today — and the old habits we need to leave behind.
What else we’re reading
What is the least we need from COP26? Pledges of “net zero” 30 years from now are too easy, argues Martin Wolf. It is necessary to cut emissions by close to 40 per cent by 2030, instead. He says the curve of emissions must be bent downwards now.
Brooke Masters When it comes to fighting climate change one very simple fact has been overlooked, says our chief business commentator.
Go deeper: Ahead of the UN climate conference in Glasgow, which starts on Monday, the FT has launched a searchable dashboard that allows you to compare 193 countries’ historical emissions and future climate targets.
Why Jay Powell has been a ‘dangerous man’ at the Fed Actions by the chair of the US Federal Reserve have moved the US closer to future financial crises and bailouts funded by taxpayers, as happened in 2008, writes Dennis Kelleher, president of financial reform advocacy group Better Markets.
Facebook after the whistleblower The company is facing criticism from its own staff that its “growth at all costs” culture is damaging individuals and society. Can Mark Zuckerberg reboot the social network?
Song lyrics strike a chord with private equity Movies and adverts have long given older songs a fresh lease of life through licensing deals. But the explosion of music streaming on platforms such as Spotify has transformed the scale of the business and now private equity groups have joined the party.
We need to keep an eye on home surveillance The US is almost on a par with China for security-camera penetration per person, according to pre-pandemic research by IHS Markit. But city surveillance accounts for just 3 per cent of the total network. The rest are installed by businesses and individuals, writes Elaine Moore. Amazon’s Ring doorbells are just the start.
The boy wonder of French cooking, Mory Sacko, has dazzled Paris and beyond with his “Franco-African-Japanese” cuisine.
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