Bill · S. 2021· Senate(119-S-2021)
Close the Round-Tripping Loophole Act
- Introduced
- 6/11/2025
- Last activity
- 6/11/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Ron Wyden
- Cosponsors
- - 3 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "Close the Round-Tripping Loophole Act," aims to amend the Internal Revenue Code of 1986. It specifically modifies how global intangible low-taxed income is calculated by excluding "round-tripped" income. The legislation introduces a "round-tripping ratio" to adjust the determination of net deemed intangible income. It also establishes specific criteria for what constitutes round-tripped income regarding property and services. Additionally, the bill provides an exception for certain small taxpayers with average annual gross receipts not exceeding $100,000,000.
Yes· 3 of 7
Does this raise the taxes companies pay?+5
The bill targets tax avoidance by closing the round-tripping loophole, which likely increases the effective tax burden on large corporations.
Does this cut taxes for small businesses?+5
The bill provides an exception that protects small taxpayers with gross receipts under $100 million from the new ratio.
Does this make it easier to run a small business?+5
The bill explicitly exempts small taxpayers with average annual gross receipts up to $100,000,000 from the new ratio.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
- Relief for Small Taxpayers: Under Section 2, the bill provides an exception where the round-tripping ratio is set to 0 percent for United States shareholders whose average annual gross receipts for the preceding three-year period do not exceed $100,000,000. This ensures that smaller entities are not subject to the new ratio calculations. (Section 2(b)(D))
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+5Increases Corporate Taxes+5Reduces Small Business Taxes+5Improves Fiscal Responsibility+4Reduces National Debt+3
- Governance And Ideology
- Increases Federal Power+3
- Demographic And Interest Groups
- Good For Business Owners+2
- 6/11/2025
- Read twice and referred to the Committee on Finance.
- 3 Cosponsors added.
- Introduced in Senate
Raphael WarnockDemocrat · Georgia
Peter WelchDemocrat · Vermont
Mark WarnerDemocrat · Virginia