Building off President Biden’s recent proposals for infrastructure spending to be paid for with corporate tax increases, Senate Finance Committee Chairman Ron Wyden (D-OR) joined with Finance members Sherrod Brown (D-OH) and Mark Warner (D-VA) in releasing a nine-page paper outlining a framework for overhauling US international tax policy.
The international tax policy framework paper (the Framework) released by Finance Chairman Wyden and Senators Brown and Warner aligns with several of the international tax proposals offered last week by President Biden to pay for a variety of spending priorities, but differs from the administration’s approach on some specific provisions.
In a separate event, Treasury Secretary Janet Yellen highlighted the tax proposals announced last week by President Biden that call for increasing the US minimum rate on global income and increasing the US corporate tax rate to 28%. In her remarks, Secretary Yellen noted that the United States is working with other G20 countries to agree on a global minimum corporate tax rate “that can stop the race to the bottom.”
Companies should be evaluating and modeling the potential effect of President Biden’s infrastructure and tax increase proposals as well as options for tax law changes being offered by key members of Congress. Companies should be communicating with policy makers about how specific proposals may affect their employees, job creation, and investments in the United States.
