The tax bill passed by Republicans in the U.S. Senate over the weekend may boost profits for industries from banking to retail to fossil fuels. It also could put the squeeze on hospitals and renewable energy firms.
While the plan is still subject to revision, the centerpiece of the existing legislation is a reduction in the corporate income tax rate to 20 percent from the current 35 percent, along with a provision that allows some companies to bring back hundreds of billions of dollars in foreign profits at a lower rate than they otherwise would’ve paid.
The Senate bill preserves the alternative minimum tax for corporations after originally proposing to eliminate it. With the regular corporate rate now set to drop to 20 percent -- the same as the corporate AMT -- it’s unclear if companies would be able to use research and development credits to lower their tax bills.
The bill, which underwent a raft of last-minute changes late Friday and early Saturday before passage, may still see more alterations as Senate and House leaders begin work to reconcile their two versions. President Donald Trump also weighed in Saturday, unexpectedly saying the corporate tax rate in the package could reach 22 percent.
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