Is pushing still hasnвЂ™t been ratified by many nations-and may never be. The 15% global minimum corporate tax that Treasury Secretary Higher rates would restart the game of companies looking to invest elsewhere in search of lower rates. Manchin is worried about the budget deficit, but itвЂ™s hard to see corporate tax revenue rising at a faster pace than 22% a year. McBride of the Tax Foundation estimates that corporate tax revenue this year will come in at 1.9% of GDP, the highest level since 2015 and higher than CBOвЂ™s prediction before tax reform.ДЄll of which suggests that it would be a mistake to raise corporate taxes on either economic or revenue grounds. Clifton estimates that the repatriation of overseas earnings amounted to about 2.4% of GDP from 2018-2021, versus 1% from 2014-2017 and 0.9% from 2010-2013. Previously, companies that repatriated capital paid a punitive tax rate. Of Strategas Research Partners says companies have brought back some $1.8 trillion since the 2017 reform. One example is the way reform provided an incentive for companies to repatriate overseas earnings to invest in the U.S. Inflation in the last year has also increased nominal corporate profits, though CBOвЂ™s estimates did include some inflation.Д«ut the OccamвЂ™s razor policy answer is that corporate tax reform worked as its sponsors predicted: Lowering the rates while broadening the base by eliminating loopholes created incentives for more efficient investment decisions that paid off for shareholders, workers and the government. What accounts for this windfall for Uncle Sam and a comparable one for state tax coffers? Corporate profits have been very strong, and government is sharing in the wealth even at a lower rate. Corporate revenue of $454 billion would exceed the annual revenue that CBO predicted from the corporate tax all the way through fiscal 2028 ($448 billion).

That compares to CBOвЂ™s estimate after tax reform of only $353 billion. (Corporate tax revenue increases in the back half of the year.) Of the Tax Foundation estimates that if the pace of the first half continues, corporate tax revenue will hit a new record of $454 billion in fiscal 2022. Corporate tax revenue for the first six months was up 22% from a year earlier to $127 billion.

Fiscal 2022 is turning out to be even better for the Treasury.

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