[CUSTOM SOLUTION] The Corporate Tax Rate

Plans to increase revenue to finance Biden’s $2 trillion infrastructure proposal has resulted in talk of raising the corporate tax rate from the current 21% to 28%. This tax on multinational firms has potential to raise as much as $1 trillion over a 15 year time span and aims to ensure that jobs aren’t moved overseas in an attempt to lessen tax obligations, and would require higher tax rates for the profits that are earned overseas. There would be incentives available for those companies that invest in research and development at home.Treasury Secretary, Janet Yellen, is in favor of a global minimum tax, that would apply to multinational corporations regardless of where they have their headquarters located.

 

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