President Biden Unveils Plan to Raise Corporate Taxes

The Biden administration’s plan, announced by the Treasury Department, would raise the corporate tax rate to 28 percent from 21 percent. The administration said the increase would bring America’s corporate tax rate more closely in line with other advanced economies and reduce inequality. It would also remain lower than it was before the 2017 Trump tax cuts, when the rate stood at 35 percent.

The White House also proposed significant changes to several international tax provisions included in the Trump tax cuts, which the Biden administration described in the report as policies that put “America last” by benefiting foreigners. Among the biggest change would be a doubling of the de facto global minimum tax to 21 percent and toughening it, to force companies to pay the tax on a wider span of income across countries.

That, in particular, has raised concerns in the business community, with Joshua Bolten, chief executive of the Business Roundtable, saying in a statement this week that it “threatens to subject the U.S. to a major competitive disadvantage.”

Article source: https://www.nytimes.com/2021/04/07/business/biden-corporate-tax-increases.html