# Plain Language Summary: Ending Corporate Greed Act

This bill creates a new tax on large corporations that make unusually high profits compared to their historical earnings. Specifically, it targets corporations with average annual revenues of at least $500 million and taxes them on any profits that exceed what they earned on average during 2015-2019 (adjusted for inflation). The tax rate is 95 percent on these "excess profits," though there's a cap so the total tax can't exceed 75 percent of the company's overall income for that year.

The idea behind the bill is to identify when big corporations are making significantly more money than they historically did and tax that extra profit at a very high rate. For example, if a company averaged $100 million in profits during 2015-2019 but makes $150 million in 2024, the $50 million difference would be considered excess profit and subject to this new tax. The bill also limits certain tax deductions these corporations can claim, such as deductions for executive compensation above certain thresholds and deductions related to foreign income.

This tax would only apply to large corporations—not small businesses, S corporations, investment trusts, or real estate investment trusts. It's designed as a temporary measure and would expire after December 31, 2026, meaning it would only be in effect for about three years if passed. The bill essentially aims to prevent large corporations from dramatically increasing their profits without paying significantly higher taxes, though supporters and critics would likely disagree about whether this approach is fair or economically sound.

Ending Corporate Greed Act

Bowman, Jamaal

Ending Corporate Greed Act&nbsp;This bill imposes a tax through 2026 on certain corporations (corporations other than regulated investment companies, real estate investment trusts, or S corporations) that have average annual gross receipts for a three-year period of at least $500 million. The tax is 95% of what are deemed excess profits for a taxable year.