Biden suggested raising the corporate tax from 21 to 28 percent. It’s a steep increase, but it’s no different as former President Donald Trump lowered the corporate interest rate – and his company, as critics have pointed out – by 14 per cent.
Minimum taxes for the largest companies
The settlement through Wednesday, which will bring an additional $ 2.5 trillion (55 trillion CZK) into the federal treasury within 15 years, but Biden’s plan doesn’t end there. The president also wants to introduce a new minimum tax on global profits for the largest companies and tighten their profits for paper companies.
“Companies will not be able to hide their revenues in places like tax havens in the Cayman Islands and Bermuda,” Biden said.
Companies with more than $ 2 billion in revenue (44 billion CZK) that generate profits but do not pay any income tax in the United States must pay 15 percent of the profits given to investors. An estimated 45 companies are affected.
He wanted to be tougher
But even before he was elected, Biden wanted to be tougher. During last year’s campaign, he promised a 15 percent minimum tax rate for all companies with an annual profit of $ 100 million.
Treasury Secretary Janet Yellen said the new plan would end the US competition to impose lower taxes on companies. According to the Biden administration, companies have been paying federal coffers in proportion to their share in the economy at least since World War II.
But pushing for change will not be easy for the president. Congress must approve most of the proposals, with only a narrow majority of Democrats in both houses and critics already declaring themselves. Biden told them he was willing to compromise in detail.
Meanwhile, the US president was also supported in his efforts by the richest man on the planet, Amazon chief Jeff Bezos, who, according to Forbes, increased his fortune by $ 63 billion (1.4 trillion CZK) to a total of $ 177 billion. Last year’s pandemic.
(3.9 trillion CZK).