President Joe Biden held an event in Pittsburgh on 31 March 2021 to announce a $2 trillion "American Jobs Plan'' focused on infrastructure and other spending initiatives, with part of the cost of his proposals to be offset by corporate tax increase proposals. In advance of the President’s remarks, the White House released an outline of specific infrastructure proposals and corporate tax increase offsets.
The American Jobs Plan includes tax incentives for clean energy and domestic manufacturing, while the “Made in America Tax Plan” contains corporate tax increase proposals. The White House summary indicates that the Made in America Tax Plan is expected to increase federal revenues by over $2 trillion over 15 years to “more than pay” for the infrastructure package and reduce federal budget deficits. The corporate tax increase proposals include increasing the corporate income tax rate to 28% and several proposed changes to US international tax rules.
The infrastructure and corporate tax increase plans announced reflect key elements of President Biden’s “Build Back Better” plan that was announced during his presidential campaign. During a White House press briefing, administration officials indicated that tax increase proposals affecting high-income individuals will be proposed in coming weeks to offset the cost of other parts of President Biden’s campaign proposals for increased spending on child care, education, expanded access to healthcare, and targeted individual tax relief measures.
