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Corporate Tax Dodging Prevention Act: New Rules for International Businesses

This act aims to increase tax revenues from large corporations, especially those operating internationally. It modifies how foreign profits are taxed and limits opportunities for tax avoidance in the U.S. Citizens may experience an indirect impact through potentially increased government revenue, which could be allocated to public services.
Key points
Restoration of progressive corporate tax rates, meaning higher taxes for companies with larger incomes.
Equalization of tax rates on domestic and foreign income to make it harder to shift profits abroad.
Limitation on interest deductions for U.S. corporations that are part of international financial groups.
Changes to rules for companies that move their headquarters abroad to avoid U.S. taxes.
Strengthening rules for foreign corporations managed from the U.S., treating them as domestic for tax purposes.
Modifications to the Base Erosion and Anti-Abuse Tax (BEAT), expanding its scope and rate.
Limitations on tax treaty benefits for certain payments and income.
Repeal of the deduction for foreign-derived intangible income (FDII).
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_HR_2254
Sponsor: Rep. Schakowsky, Janice D. [D-IL-9]
Process start date: 2021-03-26
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Corporate Tax Dodging Prevention Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2254.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-03-26.

What are the main provisions?

Key points include:

  • Restoration of progressive corporate tax rates, meaning higher taxes for companies with larger incomes.
  • Equalization of tax rates on domestic and foreign income to make it harder to shift profits abroad.
  • Limitation on interest deductions for U.S. corporations that are part of international financial groups.
  • Changes to rules for companies that move their headquarters abroad to avoid U.S. taxes.
  • Strengthening rules for foreign corporations managed from the U.S., treating them as domestic for tax purposes.
  • Modifications to the Base Erosion and Anti-Abuse Tax (BEAT), expanding its scope and rate.
  • Limitations on tax treaty benefits for certain payments and income.
  • Repeal of the deduction for foreign-derived intangible income (FDII).
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Schakowsky, Janice D. [D-IL-9].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes Economy