Lower Business Tax Rates and Eliminate Corporate AMT
Current Status: CompromiseAs of
As part of the Middle Class Tax Relief And Simplification Act:
"The Trump Plan will lower the business tax rate from 35 percent to 15 percent, and eliminate the corporate alternative minimum tax. This rate is available to all businesses, both small and large, that want to retain the profits within the business."
Under current law at the beginning of Trump's term, the corporate tax rate was not 35% but divided into eight brackets, the largest of which is 35%, the lowest at 15%.
In late April, 2017, Trump announced a draft tax plan that would have cut the corporate tax rate as promised, but did not specifically address corporate AMT.
In October 2017, the House passed a budget resolution (H. Res. 553 , H. Con. Res. 71) that specified "reducing the corporate tax rate," but did not mention corporate AMT. By late 2017, Congress passed a budget reconciliation bill that flattens the corporate tax rate from eight brackets to a flat 21% (as opposed to the 15% proposed by Trump) and eliminated the 20% corporate AMT entirely. Trump signed the bill into law in December 2017.
(Sec. 12001) This section repeals the corporate alternative minimum tax (AMT).
(Sec. 13001) This section reduces the corporate tax rate from a maximum of 35% under the existing graduated rate structure to a flat 21% rate for tax years beginning after 2017.