Last week, The White House released a statement about The American Jobs Plan, which includes many details of President Biden’s latest tax proposal. These plans are a long way from being put into law, as it all has to be reviewed, put into a bill, then passed by both the House and the Senate or through the “Budget Reconciliation” process. Regardless, we wanted to send you a link to his latest proposal so you can be aware of the potential changes ahead.
The key notes for our clients relate to the tax section of this proposal, which is at the end of the statement linked below. You can get a feel for the tax impact on the horizon, which is primarily aimed at large corporations and entities with offshore tax operations.
Quick Overview of President Biden’s Latest Tax Proposal
President Biden’s latest tax plan is aimed to “incentivize job creation and investment here in the United States, stop unfair and wasteful profit shifting to tax havens, and ensure that large corporations are paying their fair share.”
Here are a few bullet points from the White House fact sheet linked above regarding the latest tax proposal:
- Corporate tax rate will be set to 28%.
- Offshoring will be discouraged by strengthening the global minimum tax for U.S. multinational corporations.
- U.S. corporations will be prevented from inverting or claiming tax havens as their residence.
- Companies will be denied expense deductions for offshoring jobs and credit expenses for onshoring.
- A minimum tax will be enacted on large corporations’ book income.
Bottom Line: We Are Continually Monitoring the Changing Tax Laws for You
Rest assured that we at MGA are keeping up with the ever-changing tax laws and always doing our best to communicate those to you in a timely manner. Feel free to read the entire White House Fact Sheet for a more in-depth look at the potential changes heading our way.
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