September 29, 2022
WASHINGTON, D.C. – Today, U.S. Senator John Barrasso (R-Wyo.) introduced the Repealing the Ill-Conceived and Problematic (RIP) Book Minimum Tax Act. This legislation would repeal the largest tax hike from the Democrats’ reckless tax and spending bill.
The book minimum tax is an alternative minimum tax on the financial statement, or “book”, income of certain corporations. This flawed tax policy gives unelected bureaucrats the power to define taxable income and will raise taxes on American businesses by $222 billion.
In addition, the book tax targets domestic energy production by making it more expensive to produce, which will raise costs for all Americans.
“The book minimum tax is another reckless power grab by the Democrats to squeeze hardworking Americans dry. Policies like this only raise taxes on workers and consumers, resulting in wage cuts and jobs moving overseas,” said Senator Barrasso. “We need to repeal this unfair tax to ensure companies are investing in America, creating more American jobs, and unleashing American energy.”
Original cosponsors of this legislation include U.S. Senators Marsha Blackburn (R-Tenn.), John Boozman (R-Ark.), Mike Braun (R-Ind.), Bill Cassidy (R-La.), Mike Crapo (R-Idaho), James Lankford (R-Okla.), Cynthia Lummis (R-Wyo.), Rob Portman (R-Ohio), Jim Risch (R-Idaho), Pat Toomey (R-Pa.), Todd Young (R-Ind.), and Roger Wicker (R-Miss.).
Representative Jodey Arrington (R-Texas) is introducing companion legislation in the U.S. House of Representatives.
“The book minimum tax is disastrous policy at the worst possible time. With economic turbulence, historic inflation, and skyrocketing energy costs, Democrats have rolled out a tried-and-failed tax hike that will undermine domestic investment, job creation, and U.S. manufacturing. This complicated and arcane “Made-in-America” tax gives unprecedented power to unelected bureaucrats and special interest carve outs for Green New Deal subsidies, while eliminating ordinary and necessary cost recovery provisions for oil and gas production,” said Rep. Arrington. “I am proud to work with Senator Barrasso to introduce the RIP Book Minimum Tax Act to protect American competitiveness and working families from higher prices, fewer jobs, and lower wages.”
This legislation is supported by the American Petroleum Institute, the National Mining Association, the National Taxpayers Union, the U.S. Chamber of Commerce, and the Western Energy Alliance.
“The book minimum tax harms the competitiveness of the U.S. oil and gas industry and undermines its ability to meet the growing global demand for energy. We welcome Sen. Barrasso’s and Rep. Arrington’s leadership in introducing legislation to repeal this punitive new tax and urge policymakers in both chambers to support this proposal.” – Lem Smith, VP, Federal Relations, American Petroleum Institute
"With the economy reeling from the highest inflation in 40 years and families facing rising prices from ongoing supply chain shocks and rising energy and commodity prices, now is simply not the time to impose higher taxes on the companies working to alleviate these supply-side challenges. The National Mining Association appreciates Senator Barrasso’s leadership in opposing tax hikes that will compound these problems when Americans deserve solutions. Reshoring supply chains, ramping up production of American energy and materials, and producing our way out of this inflationary hole can’t be achieved through tax hikes." – Rich Nolan, President & CEO National Mining Association
"The Inflation Reduction Act's book minimum tax will do damage to the American economy and force companies to invest less in the workers and initiatives that make the U.S. more productive and innovative. NTU applauds Senator Barrasso for helping lead the charge on repealing the book minimum tax once and for all." – Andrew Lautz, Director of Federal Policy, National Taxpayers Union
"The U.S. Chamber of Commerce commends Senator Barrasso and Congressman Arrington for introducing legislation to repeal the ill-conceived corporate alternative minimum tax (AMT), which was enacted as part of the Inflation Reduction Act of 2022. Although several late-stage improvements to the measure were made, the corporate AMT will still punish companies for undertaking certain investments that are treated differently for financial reporting and income tax purposes as well as items like intangible drilling costs. More broadly, the measure will pose a competitive disadvantage to U.S.-headquartered businesses and increase the incidence of unrelieved double taxation. Unless repealed, the net effect of this new tax will be less capital investment in the United States, making America poorer and reducing future economic growth." – Neil Bradley, Executive Vice President and Chief Policy Officer at the U.S. Chamber of Commerce
“Western Energy Alliance appreciates Senator Barrasso’s bill to repeal the book minimum tax, which would specifically target the oil and natural gas industry. At a time when energy prices remain stubbornly high, America needs more domestically produced energy, not less. Yet Congress significantly increased costs on American energy producers in the inaptly named Inflation Reduction Act, thereby ensuring energy inflation continues well into the future. Senator Barrasso’s bill would reverse one of the tax provisions specifically designed to harm the energy that meets over 70% of energy demand. We need all forms of energy to ensure our modern society functions properly, but the book minimum tax is designed to disadvantage the very sources of energy that meet the vast majority of Americans’ energy needs while favoring intermittent sources that provide a small fraction.” – Kathleen Sgamma, President of Western Energy Alliance
A full text of the legislation can be found here.