Press Releases

WASHINGTON, D.C. – Today, Representative Jodey Arrington (TX-19) joined Senator John Barrasso (R-WY) to introduce H.R. 9030 – the Repealing the Ill-conceived and Problematic (RIP) Book Minimum Tax Act – to reverse the punitive new tax which will fall on U.S. manufacturers, energy producers, and job creators amid historic inflation and economic uncertainty.  

“The book minimum tax is disastrous policy at the worst possible time. With economic turbulence, historic inflation, and skyrocketing energy costs, Democrats have rolled out a tried-and-failed tax hike that will undermine domestic investment, job creation, and U.S. manufacturing. This complicated and arcane “Made-in-America” tax gives unprecedented power to unelected bureaucrats and special interest carve outs for Green New Deal subsidies, while eliminating ordinary and necessary cost recovery provisions for oil and gas production,” said Rep. Arrington. “I am proud to work with Sen. Barrasso to introduce the RIP Book Minimum Tax Act to protect American competitiveness and working families from higher prices, fewer jobs, and lower wages.”

“The book minimum tax is another reckless power grab by the Democrats to squeeze hardworking Americans dry. Policies like this only raise taxes on workers and consumers, resulting in wage cuts and jobs moving overseas,” Sen. Barrasso said. “We need to repeal this unfair tax to ensure companies are investing in America, creating more American jobs, and unleashing American energy.”

“The book minimum tax harms the competitiveness of the U.S. oil and gas industry and undermines its ability to meet the growing global demand for energy. We welcome Sen. Barrasso’s and Rep. Arrington’s leadership in introducing legislation to repeal this punitive new tax and urge policymakers in both chambers to support this proposal,” said Lem Smith, Vice President of Federal Relations at American Petroleum Institute.  

“The book minimum tax recently passed in the Inflation Reduction Act could harm American businesses, especially manufacturers, at a time when the economy seems to be teetering on the edge of a recession. Congressman Arrington’s RIP Book Minimum Tax Act would remove this onerous tax, scrapping the measure before it even has a chance to be put in place. National Taxpayers Union applauds Congressman Arrington for his leadership on pushing back against the costly book minimum tax,” said Andrew Lautz, Director of Federal Policy at the National Taxpayers Union.

Background on the Legislation:

• In August 2022, Congressional Democrats passed their reckless tax and spending bill. The largest tax increase in the bill was a new 15% tax on financial statement, or “book,” income of certain U.S. companies.

• Book income is based on an entirely different set of rules, and established for entirely different purposes, than taxable income. Book income and taxable income frequently differ. For example, book income does not consider certain tax incentives specifically designed by Congress, in a bipartisan manner, to support domestic investment. While the book income tax claws back longstanding tax provisions, including cost recovery provisions for oil and gas production, Democrats have included special interest loopholes and carves outs for favored industries and have given unelected bureaucrats the ability to pick winners and losers by manipulating the tax code. 

• The book minimum tax has been tried before, and it failed miserably. A similar tax was rolled back in the 1980s after only two years due to its complexity and unintended consequences. In fact, then Chairman of the House Ways and Means Committee Democrat Dan Rostenkowski, introduced the legislation to repeal the book minimum tax.

• The book minimum tax is a flawed tax policy, will make investing in America more expensive, undermine American manufacturing and energy production, and kill American jobs. 

• This “Made-in-America” tax will make production and supply chain problems worse and increase prices on products people use daily. It will ensure that more of our everyday household items are made in China.

Other original House co-sponsors include Representatives Ron Estes (KS-04), Drew Ferguson (GA-03), Mike Kelly (PA-16), David Kustoff (TN-08), Darin LaHood (IL-18), Carol Miller (WV-03), Greg Murphy (NC-03), August Pfluger (TX-11), Tom Rice (SC-07), David Schweikert (AZ-06), Beth Van Duyne (TX-24), and Brad Wenstrup (OH-02). 

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