What You Need to Know
- The higher tax rate would target corporate earnings that are above pre-pandemic levels.
Senator Bernie Sanders is proposing to tax some profits of the largest U.S. corporations as much as 95% in a new bill that would seek to collect more revenue from the largest U.S companies, including JPMorgan Chase & Co. and Chevron Corp., that are earning more than they did before the pandemic and the war in Ukraine.
“We cannot allow big oil companies and other large, profitable corporations to continue to use the war in Ukraine, the Covid-19 pandemic and the specter of inflation to make obscene profits — by price-gouging Americans at the gas pump, the grocery store or any other sector of our economy,” Sanders said in a statement.
Sanders said that Chevron would have owed an additional $12.9 billion in taxes under his proposal, based on the oil company’s profits last year. JPMorgan would have owed an extra $18.8 billion, he said.
Companies would pay the current 21% corporate tax rate on earnings up to the amounts they recorded before the pandemic, and then have to pay a 95% rate for profits above those levels.