S 4185

This bill, the Stop Subsidizing Giant Mergers Act, aims to change how large corporate mergers are treated for tax purposes. Specifically, it modifies tax rules to prevent certain large corporations from treating acquisitions as tax-free reorganizations. The bill sets a threshold of $500 million in combined annual revenue for corporations involved in mergers, consolidations, or acquisitions to trigger these new rules, and it applies to both individual corporate transfers and transfers involving multiple entities. The bill also includes inflation adjustments to the revenue threshold, effective starting in 2027.