Wall Street Journal: Trump’s Tax Cuts Are Exposing Companies to Biden’s Tax Hike:

Democrats’ older alternative minimum tax claws back billions of dollars in savings from newer GOP law.

The 2022 minimum tax, known as CAMT, requires companies with average income exceeding $1 billion to measure tax liability twice and pay whichever is greater. Companies calculate taxes under the regular system with its 21% rate, and then calculate taxes again with a 15% rate and a broader tax base that resembles the income they report to investors on financial statements.

Large companies are running into a problem as they try to claim some of the tax cuts that the Republican Congress passed this summer: They can’t escape the corporate tax increase that Democrats passed three years ago.

Meta Platforms, Broadcom, Qualcomm and others are warning that they are now getting hit by the corporate alternative minimum tax, the 15% tax-rate floor that was part of the 2022 Inflation Reduction Act.

This is exactly what CAMT was designed to do, the tax’s defenders say. 

Under the Trump administration, Treasury officials have already shown a willingness to soften CAMT. In September, Treasury said it would relax a rule governing how cryptocurrency holdings are counted toward the tax. That removes a potential burden on Strategy, the software company formerly known as MicroStrategy that has significant bitcoin holdings.