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taxation
Trump Quietly Dishes Out More Tax Breaks to Rich Investors While Slashing Food Aid for Millions
"Why would corporations spend millions on Trump's ballroom or Bitcoin? Because they're getting billions in unlegislated tax breaks," said one Democratic lawmaker.
Nov 08, 2025
The Trump administration is quietly waging an all-out regulatory war on a Biden-era corporate tax that aimed to prevent large companies from dodging their tax liabilities while reporting huge profits.
The corporate alternative minimum tax (CAMT) was enacted as part of the Inflation Reduction Act, Democratic legislation that former President Joe Biden signed into law in 2022. The CAMT requires highly profitable US corporations to pay a tax of at least 15% on their so-called book profits, the figures reported to shareholders.
As the Institute on Taxation and Economic Policy has explained: "Many of the special breaks that corporations use to avoid taxes work by allowing companies to report profits to the IRS that are much smaller than their book profits. Corporate leaders prefer to report low profits to the IRS (to reduce taxes) and high profits to the public (to attract investors)."
But since President Donald Trump took office in January, his administration has issued guidance and regulatory proposals designed to gut the CAMT. The effort is a boon to corporate giants and rich private equity investors at a time when the Trump administration is relentlessly attacking programs for low-income Americans, including Medicaid and nutrition assistance.
The New York Times reported Saturday that "with its various tax relief provisions, the administration is now effectively adding hundreds of billions of dollars in new breaks for big businesses and investors" on top of the trillions of dollars in tax cuts included in the Trump-GOP budget law enacted over the summer.
"The Treasury is empowered to write rules to help the IRS carry out tax laws passed by Congress," the newspaper added. "But the aggressive actions of the Trump administration raise questions about whether it is exceeding its legal authority."
Why would corporations spend millions on Trump's ballroom or bitcoin?
Because they're getting billions in unlegislated tax breaks.
We've gone from a system where the rich must pay taxes for public services, to one where they must pay the president for private favors.
— Tom Malinowski (@Malinowski) November 8, 2025
The administration's assault on the CAMT has drawn scrutiny from members of Congress.
In a September 8 letter to US Treasury Secretary Scott Bessent, a group of Democratic lawmakers and Sen. Angus King (I-Maine) warned that the administration's guidance notices "create new loopholes in the corporate alternative minimum tax for the largest and wealthiest corporations."
"Most troubling, Notice 2025-27, issued this June, allows companies to avoid CAMT if their income—under a simplified accounting method—is below $800 million," the lawmakers wrote. "The Biden administration previously set the safe harbor threshold precisely at $500 million in its proposed CAMT rule after calculating that a higher safe harbor threshold would risk exempting corporations that should be subject to CAMT under statute."
"Now, less than nine months later and with zero justification, this new guidance summarily asserts that an $800 million safe harbor will not run that risk," they continued. "We are seriously concerned that this cursory loosening of CAMT enforcement will simply allow more wealthy corporations to avoid paying their legally owed share."
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Report Offers Easy Path for States to Make Tax Code Fairer by Targeting the Rich
"For too long, our tax systems have favored wealth over work," said the report's co-author. "State wealth proceeds taxes would take a major step toward correcting that imbalance.”
Oct 31, 2025
Taxing the passive proceeds of extreme wealth—including capital gains and stock dividends—is an easy way for states to generate billions of dollars in revenue, reduce inequality, and boost fairness in tax systems, according to a report published Thursday.
The Institute on Taxation and Economic Policy (ITEP) report shows how state-level wealth proceeds taxes of just 4% on profits generated by means including capital gains, dividends, and passive business income could raise more than $45 billion a year in revenue nationwide, while an enhanced version of such a levy would generate $57 billion annually.
According to the report, approximately three-quarters of such revenue would come from households with annual incomes exceeding $1 million—and only 4.4% of US taxpayers would owe anything at all.
Wealth inequality gets worse when working households pay more in taxes than wealthy owners.States have a simple way to address this problem and raise much-needed revenue.It's well past time for a Wealth Proceeds Tax.
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— ITEP (@itep.org) October 30, 2025 at 10:44 AM
Other key findings of the report include:
- A state wealth proceeds tax would help correct an imbalance in which most of the income generated by passive wealth currently faces effective federal tax rates roughly 40% lower than wages and salaries;
- A wealth proceeds tax is easy to implement—states can piggyback on federal filings, minimizing administrative costs for both taxpayers and state revenue agencies; and
- For a successful example of a wealth proceeds tax, look to Minnesota.
In 2023, Minnesota became the first state to enact a law piggybacking a wealth proceeds tax on the federal net investment income tax (NIIT), a levy on certain earnings from high-income individuals, estates, and trusts. Minnesota's 1% tax only applies to such wealth exceeding $1 million and is expected to raise more than $60 million in revenue in 2026.
Other states, while not having a wealth proceeds tax, apply higher levies on certain types of proceeds. Massachusetts, for example, imposes a short-term capital gains that is 3.5% higher than the ordinary state income tax rate, while Maryland enacted a 2% levy on short- and long-term capital gains for households earning more than $350,000 annually.
“States have an untapped opportunity to tax extremely wealthy families," ITEP senior analyst and report co-author Sarah Austin said in a statement. “The federal government already defines what counts as wealth-derived income, so states can easily adapt that framework to make their tax codes fairer and more robust.”
The report's other author, ITEP research director Carl Davis, said: "For too long, our tax systems have favored wealth over work. State wealth proceeds taxes would take a major step toward correcting that imbalance.”
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'There Is No Lack of Money': Climate Movement Demands Billionaire Tax to Fund Greener Future
"A fair billionaire tax could fund climate flood prevention, clean air, green cities, affordable housing, and nature protection," said one Greenpeace campaigner.
Oct 30, 2025
As Hurricane Melissa leaves a trail of destruction in the Caribbean and the world prepares for the next United Nations climate summit, campaigners this week are demanding taxes to make the superrich pay for creating a better future for all, including by transitioning away from planet-wrecking fossil fuels to renewable energy.
An Oxfam International report released Tuesday found that consumption-based carbon emissions of the richest 0.1% of the global population surged by 92 tonnes between 1990 and 2023, while CO2 pollution from the poorest half of humanity grew by just 0.1 tonnes.
The following day, the UK government released a new climate action plan for the next 12 years. The country aims to decarbonize its electricity supply by 2030 and reach net-zero greenhouse gas emissions by 2050. The climate group 350.org responded by urging Chancellor Rachel Reeves to introduce a tax on ultrawealthy individuals and polluting companies.
"Ordinary people are already paying the price for a crisis they didn't cause—from failed harvests here in the UK to devastation from Hurricane Melissa overseas," 350.org UK campaigner Matilda Borgström said in a statement. "The government's plan will only work if it is funded fairly."
"There's more than enough wealth in this country to pay for affordable clean energy, warm homes, and secure jobs," Borgström argued. "The question for Rachel Reeves is simple: Whose side is she on, ordinary people or the superrich?"
BREAKING: 80+ young people are outside the Treasury right now to tell Rachel Reeves: make tax the super-rich PAY UP - or step down.This Budget, it's time for Reeves to pick a side: us or the billionaires. For wealth taxes to fund investment in a better future.
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— Green New Deal Rising (@gndrising.bsky.social) October 27, 2025 at 5:56 AM
Meanwhile, Greenpeace on Thursday took aim at the wealthiest person on the planet, Elon Musk. As of Thursday, his estimated net worth is $472-490.2 billion, though he could become the world's first trillionaire if shareholders of electric vehicle giant Tesla approve his proposed CEO pay package next week.
Noting Tesla's annual general meeting on November 6, Greenpeace called on governments "to lay the ground for a global tax reform" negotiations for a UN Framework Convention on International Tax Cooperation, scheduled to start in Nairobi, Kenya on November 10—the same day the climate summit, COP30, is set to begin in Belém, Brazil.
"Instead of enabling one person to become a trillionaire, governments should unlock that same scale of wealth—the $1.7 trillion, which a billionaire and multimillionaire tax could generate per year globally—to protect lives and secure our common future," said Fred Njehu, Greenpeace Africa political lead for the Fair Share campaign, in a statement.
"A fair billionaire tax could fund climate flood prevention, clean air, green cities, affordable housing, and nature protection," Njehu noted. "There is no lack of money, only a failure to make the richest of the rich pay their fair share. Governments must act on behalf of the majority of people and listen to what many economic experts suggest: Tax the superrich and their polluting corporations to finance a fair green transition."
A UN synthesis report published Tuesday shows that governments' climate plans, officially called Nationally Determined Contributions, would cut emissions by just 10% by 2035 compared to 2019 levels, dramatically short of what is needed to meet the Paris Agreement's goal of keeping global temperature rise this century at 1.5°C above preindustrial levels.
"There is little mistaking the potential of the wealth tax to serve as a financial engine for environmental initiatives," Amir H. Khodadadi, an Iranian developmental economist focused on climate policy and green technology, wrote Wednesday for Earth.org. "Theoretically, a properly designed wealth tax could redistribute wealth and underwrite everything from renewable energy infrastructure to strategies for climate adaptation."
"Reality, however, is a good deal trickier," Khodadadi acknowledged. "As attractive as it is from those standpoints, using a wealth tax for climate action raises some very thorny questions about equity, effectiveness, and possible unintended consequences that will need to be thoughtfully weighed."
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