Understanding the Biden Tax Plan
A run through the major tenets of the Democratic Party candidate’s tax proposals and what they could mean to investors.
- Biden is proposing an increase in the corporate tax rate – from 21% to 28%. Prior to the Tax Cuts and Jobs Act passed under the Trump administration, the corporate tax rate stood at 35%.
- Biden is also proposing a minimum tax of 15% on all companies that earn over $100 million in annual net income. He wants to double the tax rate on income by foreign subsidiaries of US-based companies.
- Biden hopes to use revenues from tax increases to fund a significant infrastructure bill, which he argues will boost the US economy and create jobs.
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