On March 31, President Biden announced “The Made In American Tax Plan” (the “Biden Tax Plan”) to fix the corporate tax regime and ensure large corporations pay their fair share.
In particular, the Biden Tax Plan would increase the federal corporate income tax rate from the current 21 percent to 28 percent, and will impose a 15 percent “book income” minimum tax on large corporations. It will also reform certain tax benefits available to US corporations under the current law in respect of foreign earnings, and will tighten the anti-inversion rules to make it even harder for US corporations to move offshore.
Also, the Biden Tax Plan intends to ensure that the Internal Revenue Service has the resources it needs to effectively enforce the laws against corporations. There will be a broader enforcement initiative in the coming weeks that will address tax evasion among corporations and high-income taxpayers.
Although there are few details available at this time, taxpayers should expect significant development soon and begin assessing their respective circumstances and planning strategies as early as possible.