Corporate Tax Dodging Prevention Act

The Corporate Tax Dodging Prevention Act (S 4098) would reform corporate taxation by implementing progressive tax rates (15-35% based on income levels), limiting foreign tax credits for multinational corporations, and restricting interest deductions for companies in international financial reporting groups. Key provisions include new tax rate structures with surcharges for high-income corporations, country-by-country application of tax rules, and modifications to prevent tax avoidance through "inverted" corporations and foreign subsidiaries. The bill also repeals the deduction for foreign-derived intangible income and treats foreign corporations managed and controlled in the U.S. as domestic for tax purposes. These changes would primarily affect large multinational corporations with complex international operations that have historically minimized their U.S. tax liability through various avoidance strategies.