Story perspectives

Tax Reform Tug-of-War: Trump's Cuts vs. Biden's CAMT

11/13/2025

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Summary

Story summary

President Donald Trump's 2017 tax cut lowered the corporate tax rate from 35% to 21% and eliminated the corporate alternative minimum tax (CAMT).
Corporations subsequently paid an average tax rate of 12.8%, down from 22%.
President Joe Biden's Inflation Reduction Act reinstated CAMT, requiring large corporations to calculate tax liabilities in three stages.
Recent reports suggest that new IRS regulations from the Trump administration may undermine CAMT's effectiveness.
These changes could significantly impact tax revenues, previously projected to increase by $222 billion over ten years.

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Story summary

President Donald Trump's 2017 tax cut lowered the corporate tax rate from 35% to 21% and eliminated the corporate alternative minimum tax (CAMT).
Corporations subsequently paid an average tax rate of 12.8%, down from 22%.
President Joe Biden's Inflation Reduction Act reinstated CAMT, requiring large corporations to calculate tax liabilities in three stages.
Recent reports suggest that new IRS regulations from the Trump administration may undermine CAMT's effectiveness.
These changes could significantly impact tax revenues, previously projected to increase by $222 billion over ten years.