Bill · S. 4185· Senate(119-S-4185)
Stop Subsidizing Giant Mergers Act
- Introduced
- 3/25/2026
- Last activity
- 3/25/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Sheldon Whitehouse
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The ``Stop Subsidizing Giant Mergers Act'' aims to amend the Internal Revenue Code of 1986. The bill seeks to end the tax-free treatment for certain corporate reorganizations involving large corporations. Specifically, it targets mergers, consolidations, acquisitions, or transfers where the combined average annual gross receipts of the corporations exceed $500,000,000. The act also includes rules regarding transfers to corporations controlled by transferors. These changes would apply to transfers occurring after the Act is enacted.
Yes· 3 of 5
Does this raise the taxes companies pay?+6
The bill ends the tax-free treatment for mergers and acquisitions involving large corporations with gross receipts exceeding $500 million.
Does this make the government pay for what it commits to?+3
By taxing large corporate reorganizations that were previously tax-free, the bill increases federal revenue through more rigorous tax enforcement.
Does this make it easier to run a small business?+2
The bill specifically targets large corporations with high gross receipts, leaving smaller business transactions unaffected by these new rules.
The opposite
Would high-income households be better off under this?-4
Large corporations often represent the interests of high-income stakeholders who may face higher tax burdens due to the loss of tax-free merger treatment.
Would business owners be better off under this?-3
Large corporate business owners will face higher taxes on certain acquisitions and transfers that were previously tax-free.
Who it would affect, and how
Potential Positive Impacts for People
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Ending Tax-Free Treatment for Large Mergers: The bill targets acquisitions where the combined average annual gross receipts of the acquiring and acquired corporations exceed $500,000,000 (Section 2(a)(ii)(III)). This change is intended to end the tax-free treatment of these specific corporate reorganizations.
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Regulation of Large Transfers: The bill applies new rules to transfers of property by two or more corporations if their combined average annual gross receipts exceed $500,000,000 (Section 2(b)(1)). This aims to modify how such transfers are treated under Section 351.
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Prevention of Tax Avoidance: The Secretary is granted the authority to prescribe regulations and guidance to prevent the abuse of these rules, including through the use of a series of transactions designed as part of a unitary plan (Section 2(a)(vi) and Section 2(b)(5)).
Potential Negative Impacts for People
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Tax Burden on Large Corporations: Mergers, consolidations, acquisitions, or transfers that were previously treated as tax-free under certain sections of the Internal Revenue Code may no longer receive that treatment if the corporations' combined average annual gross receipts exceed $500,000,000 (Section 2(a)(ii)).
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Impact on Multiple Transferors: Corporations involved in transfers of property where the combined average annual gross receipts of the persons involved exceed $500,000,000 will no longer have the application of subsection (a) of Section 351 (Section 2(b)(1)).
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
- Increases Corporate Taxes+6Improves Fiscal Responsibility+3Improves Small Business Support+2
- Demographic And Interest Groups
- Good For Union Workers+2Good For High Income Households-4Good For Business Owners-3
- Governance And Ideology
- Improves Government Transparency+2
- 3/25/2026
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
Josh HawleyRepublican · Missouri