According to a new report, the company most likely to benefit from President Trump’s recently proposed minimum tax is none other than Amazon.
The retail giant would be hit with a blended 32 percent rate under the tax proposal — far higher than the 16.66 percent corporate tax rate Amazon pays — if the concept becomes law.
According to the Tax Foundation’s tax analysis of the Trump proposal, the 35 percent tax rate combined with a federal sales tax adds up to a combined 35.67 percent. Using the institution’s method, this would result in a blended 32 percent tax on Amazon’s international sales. Using the foundation’s modified Canadian tax base, the federal and foreign taxes would hit an even higher 33.41 percent.
Similarly, General Motors would fare less well than companies that have headquarters in other countries, according to the Tax Foundation’s analysis. The joint company sold $136 billion worth of vehicles in the United States last year and has many manufacturing plants in other countries. In 2015, the last year for which data are available, GM sold $123 billion worth of cars and trucks abroad. Because GM would be taxed at 35 percent under the Trump proposal, it would face a blended 34.33 percent tax rate on its foreign sales.