Part 2/4:
This shift could affect how companies manage their finances, potentially incentivizing different operational strategies. The model being considered would particularly target large corporations, aiming to increase their tax contributions as part of broader fiscal reforms.
Impact on Large and Small Companies
The core of the proposal is a bifurcated approach: companies earning over a billion dollars would face a higher effective tax rate, whereas smaller firms earning below that threshold would benefit from a 5% tax cut. This structure reflects a policy intent to balance increased contributions from the largest players while alleviating tax burdens for smaller enterprises, possibly to stimulate growth in that segment.