Why so glum?
Photographer: Mark Wilson/Getty Images
So it turns out, according to a Bloomberg News article posted on Tuesday, that Senate Republicans made a last-minute mistake in their tax bill, keeping a 20-percent corporate alternative minimum tax instead of doing away with it. The Chamber of Commerce characterized this as "a very unpleasant surprise," while a tech lobbyist said it was likely the result of a "drafting error."
I had a different reaction. What a brilliant idea!
As you may have heard, as part of the tax overhaul, both the House and Senate reduced the corporate tax rate significantly, from the current 35 percent to 20 percent. If the corporate alternative minimum tax were to be eliminated, the consequence would be that companies like Walmart, which operate primarily domestically, and which therefore don't receive a lot of tax breaks, will pay somewhere close to 20 percent of their profits in taxes.