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# Summary of H.R. 7933: Corporate Tax Dodging Prevention Act This bill aims to increase corporate tax revenue by closing international tax avoidance strategies and raising tax rates on high-earning corporations. It restores a graduated corporate tax structure beginning in 2025, with rates ranging from fifteen percent on income up to fifty thousand dollars to thirty-five percent on income exceeding ten million dollars. The legislation eliminates tax advantages for foreign-controlled corporations by treating certain foreign corporations with U.S. management as domestic for tax purposes and restricting the use of foreign subsidiaries to reduce U.S. taxable income. It also imposes strict limits on the amount of interest expenses that multinational corporations can deduct, applies foreign tax credits on a country-by-country basis rather than globally, and eliminates the deduction for foreign-derived intangible income that currently benefits U.S. companies earning income abroad. The bill affects multinational corporations, foreign subsidiaries of U.S. companies, and corporations with significant offshore operations, with most provisions becoming effective for tax years beginning after December 31, 2024, or upon enactment. The legislation carries no explicit funding amounts but is designed to generate substantial tax revenue through closing loopholes that have allowed corporations to shift profits offshore and reduce U.S. tax liability.

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