Joe Biden raises taxes on wealthy and multinationals with overseas offices.

Joe Biden (source Lapresse)

And after the 2 trillion dollars for refreshments, the president of the United States, Joe Biden, is considering a detailed fiscal plan to raise over 2 trillion dollars to finance his ambitious infrastructure plan.

The plan’s goal is to raise $ 2.5 trillion over the next 15 years through the corporate tax increase, a minimum rate of 15% on after-tax profits and a strong encouragement for large corporations that pay taxes abroad to take their profits back home.

The new taxation is made up of three central points.

The first is the increase in corporate tax, from the current 21% – wanted by Donald Trump in 2017 – to 28%, seven percentage points, however, below the 35% in force until the presidency of the Republican.

The second is the adoption of decisive measures against companies (many multinationals) taxed in other countries, tax havens, such as the Bahamas or Ireland. And this through an increase in taxes on foreign earnings and a minimum rate of 15% on declared after-tax profits.

Third, stop subsidies to fossil fuel companies replaced by incentives for the production of clean energy.

Companies currently taxed abroad will no longer be able to evade payment of US taxes on payments made to foreign branches. This measure, according to the Treasury Department, it should guarantee a return of $ 2 trillion in foreign profits over the next decade.

Faced with stiff opposition, Biden said “that it is not acceptable that 91 of the 500 largest companies in the country paid zero taxes in 2019”. The Democrat’s promise is not to raise taxes to incomes below $ 400,000 per year.

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According to the latest poll, the American Employment Plan – the new infrastructure plan – is supported by 73% of voters, in a bipartisan way. But in Congress, opposition to the plan is fierce, and the Democrats face long battles. Janet Yellen,

Janet Yallen, US Treasury Secretary, is confident that the tax hike plan “is mutually beneficial for the country and businesses. Tax reform is not a zero-sum game, with companies on one side and the government on the other. There are mutually beneficial policies that are beneficial to all. And the new plan goes precisely in this direction ”.

But the war in Congress has not yet begun.


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