The Tax on GAAP is Back (or at least proposed)

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We discuss the recently proposed 15% corporate minimum tax to be applied to financial accounting earnings. The idea was proposed by Senator Elizabeth Warren in 2019. At that time, we wrote several articles that were published in by various media outlets:

WSJ: https://www.wsj.com/articles/dont-let-warren-politicize-accounting-11557089967
The Hill: https://thehill.com/opinion/finance/439693-warrens-corporate-tax-solution-is-fundamentally-flawed

A few months later, 11 Senators wrote a letter to the FASB in favor of an accounting change that would improve tax enforcement. We wrote a letter to the FASB urging them to disregard any arguments for financial accounting changes that serve the objective of tax enforcement (the tax code can do this instead). The letters can be found on the last two links here: https://www.fasb.org/jsp/FASB/CommentLetter_C/CommentLetterPage&cid=1218220137090&project_id=2019-500