Democrats Prepare Plan to Raise Taxes on Multinational Corporations

The president is expected to detail as much as $2 trillion more in education, health care and other spending initiatives later this month, much of which would be financed by raising taxes on high-earning individuals. Mr. Biden’s aides have estimated that his international tax proposals could raise more than $600 billion over the course of 10 years.

Mr. Wyden, in a news release, said that the senators tax plan would “not only generate critical revenue to pay for President Biden’s infrastructure package,” but would also “encourage additional investment in the United States and its workers.”

The Senate drafters do not specify the exact new tax rates associated with their plan or how much additional tax revenue it would raise, choosing instead to wait and set rates to match Democrats’ spending ambitions later this year. “I’m going to start rolling out specific proposals so that people can have ideas about how they might proceed,” Mr. Wyden said in an interview last month.

The presence of Mr. Brown, one of the most progressive Democrats in the Senate on tax issues, and the more centrist Mr. Warner as co-authors suggests the Wyden plan could attract widespread support in a Democratic caucus that most likely cannot afford to lose a single vote for Mr. Biden’s infrastructure plan.

Mr. Brown said in a statement on the plan that “corporations should pay their fair share, just like Ohio families do, and they shouldn’t get a tax break for shipping workers’ jobs overseas.”

Mr. Warner argued that the proposal would provide an incentive to invest in the United States, saying “we need an international tax system that rewards companies making investments here in the U.S., particularly in cutting-edge technologies that will dictate the future success of our economy and ability to create good-paying jobs.”

Article source: https://www.nytimes.com/2021/04/05/business/raising-taxes-corporations.html