U.S. Senate Democrats take aim at Trump 2017 global tax reforms

Lawrence Kim
Апреля 6, 2021

Joe Manchin (W.Va.) announced on Monday he does not support President Biden's $2 trillion infrastructure bill as it now stands, effectively killing the legislation's prospects until changes are made.

A tax increase, which would take effect as early as January 2022, would cut into corporate profits as the economy recovers, and the Biden plan could reduce the earnings of companies in the S&P 500 by at least 10%, says accounting analyst Dave Zion of the Zion Research Group. "Those that did, most of it was spent on stock buybacks", Warner told reporters on a conference call.

The Democratic plan would not repeal those taxes, but modify them to equalize their rates and move them closer to the main corporate rate. Their plan also aims to create incentives to invest in innovation in the United States rather than offshoring factories, restoring full credits for domestic investments and curtailing the largest corporations from eroding the USA tax base.

The proposal will likely face strong opposition from Republicans, who have criticized Biden's plans to roll back their party's signature Trump-era legislative achievement as putting US companies at a competitive disadvantage.

Swing vote Democratic Sen. While he would not comment on the specifics of the president's proposal to raise the US corporate tax rate from 21% to 28%, he said he wanted to go through the plan in much more detail than he has so far.

Their proposal comes as the tax debate is about to heat up in Washington as Biden's plan already faces hurdles in Congress, including with some Democratic lawmakers.

Former President Donald Trump slashed the corporate tax rate to 21% from 35% - a global high - during his time in office, arguing that the rate disadvantaged the US on the global stage and led many American business to relocate offshore.

Yellen on Monday called for a global minimum tax as she participates in her first International Monetary Fund and World Bank Spring Meetings as treasury secretary.

During the interview, Manchin suggested that while he's against raising the corporate tax rate to 28%, he may be able to support raising it to 25%, citing the need to maintain America's market competitiveness.

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