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Clothing, Drugs and Electronics Are All in Scope of Democrats’ 15% Minimum Tax

  • Democrats say levy compels tax-dodgers to pay more to IRS
  • Republicans warn of supply chain damage, jobs going overseas
Ron Wyden
Ron WydenPhotographer: Andrew Harrer/Bloomberg

The economic plan advanced by Senate Democrats would lead to higher taxes for makers of clothing, drugs and electronics, according to an analysis by Congress’s official tax scorekeeper, adding complexity to the debate over the 15% US corporate minimum tax. 

About half of a new alternative corporate income tax would be paid by companies that self-identify as manufacturers, with about a quarter of the total being from companies making apparel, pharmaceuticals and electronics, according to new data from the Joint Committee on Taxation.