It would pay $2 trillion toward spending packages.
On Wednesday, Treasury Secretary Janet Yellen introduced a plan to pay for the president’s $2 trillion spending package by raising corporate tax rates and curtail the evasion of taxes on foreign corporate earnings.
The most significant change in the proposal, which has been titled the “Made in America” plan, is to hike corporate tax rates from 21 percent to 28 percent. The domestic corporate rate was previously lowered from 35 percent as part of President Trump’s 2017 Tax Cuts and Jobs Act.
In announcing the plan, Secretary Yellen said, “Over the past three years, corporate tax collections have fallen to their lowest level since World War II, 1% of GDP.”
To cover multinational corporations that do business abroad, the administration intends to boost the global minimum tax applied to U.S. corporations to 21 percent from between 10.5-13 percent.
The proposal is facing opposition from those in the business community and among partisans.
As the Lord Leads, Pray with Us…
- For God’s purpose to be accomplished while the administration sets out to increase taxes on corporations.
- For the president’s advisors as they evaluate the impact the tax hike would have on the economic recovery from pandemic losses.
- For the treasury secretary to consider the effect the higher corporate taxes may have on employment and wages.
Sources: Washington Examiner, New York Times
