How the 15% US Minimum Corporate Tax Would Work: QuickTake

The tax, climate and energyproposal by Senate Democrats includes a 15% minimum tax on the domestic profits of large American companies. This roundabout method to collect more money from corporations, known as a minimum book tax, is critical to the deal, since it provides more than 40% of the new revenue to fund the energy investments and deficit reduction that Democrats are hoping to tout in the midterm elections this November.

1. How would the corporate minimum tax work?

Companies with at least $1 billion in income would be required to calculate their annual tax liability two ways: one ...