Bloomberg
Yellen claims tax plan pays for $ 2 trillion in overseas profits
(Bloomberg) – Treasury Secretary Janet Yellen presented a detailed business proposal for the Biden administration’s proposed new corporate tax code, a plan she says will be fairer for all Americans, remove incentives for companies to move investment and profits abroad and get more. to the tax proposals published last week in President Joe Biden’s $ 2.25 trillion economic package, the Treasury Department said the changes over the decade would return about $ 2 trillion in corporate profits to the U.S. tax network, with about $ 700 billion in federal income from the end of incentives to move profits abroad. Overall, the additional tax levy of about $ 2.5 trillion over 15 years will pay off Biden’s eight-year spending initiative, which focuses on infrastructure, green investment and the social arena. according to the Ministry of Finance, programs that will support the growth of the workforce. Few large corporations will remain intact, and tech giants such as Apple Inc. and Microsoft Corp. are likely to pay more. “Our tax revenue is already at its lowest level in generations, and as it continues to fall lower, we will have less money to invest in roads, bridges, broadband and R&D,” Yellen told reporters during a telephone briefing. in mind research and development. “In choosing tax competition, we neglected competition at the expense of the skills of our workers and the strength of our infrastructure. It’s suicidal competition. ” Key Elements On Wednesday, the Treasury released a 17-page report that is likely to serve as a roadmap for administration officials and legislators seeking to push through Congress in the coming months a consolidated package of spending and tax proposals. elements of the corporate tax plan include raising the US corporate rate from 21% to 28% and introducing minimum taxes on both foreign and domestic profits that corporations report to shareholders, changes that will significantly increase the taxes that companies must pay. more: Biden’s economic plan depends on party unity after procedural victory Tax proposals are already facing stiff opposition from Republican legislators and opposition from some moderate Democrats. West Virginia Senator Joe Manchin said he opposed corporate tax rates above 25%. In a 50-50 Senate split, Biden cannot afford to lose the support of a single Democratic senator if he wants to push through any part of the package. While most of the business groups, including the US Chamber of Commerce and the Business Roundtable, came. While opposing tax increases, some acknowledged that higher corporate taxes could be beneficial to fund infrastructure spending. Chief Executive Officer of Amazon.com Inc. Jeff Bezos said on Tuesday that he would support a tax hike, but did not provide a figure. The proposal for a global minimum tax came at a time when the Organization for Economic Co-operation and Development is negotiating with about 140 countries, including the United States, to impose a worldwide duty on corporate profits. The global rate has yet to be determined, although previous proposals suggested a rate of around 12.5%. Biden’s plan would be 21% higher and could complicate negotiations. Read More: Global Minimum Tax Impulse Gain Since G-20 Seeing Annual Average Deal The Treasury Department’s report contains ample data to support the administration’s argument. According to the Nonpartisan Joint Tax Committee, US-based companies operating around the world collectively paid an effective rate of 7.8% in 2018, the first year that former President Donald Trump’s tax cuts took effect. A year earlier, corporations paid 16%. In OECD countries, corporate tax revenue is equivalent to an average of 3.1% of GDP. It is 1% in the U.S., according to a Treasury report, placing an unfair burden on workers, exacerbated by Trump’s changes that lowered corporate fees in 2017. The report points to research showing that corporations are investing more of their savings from Trump’s tax cuts on share buybacks and dividend distributions than on new investments. Profitable companies will no longer be able to use tax breaks to completely cancel their federal tax accounts and will have to pay at least 15% of the profits shown on their financial statements, known as accounting income. This levy will apply to corporations earning at least $ 2 billion, which is above the $ 100 million threshold included in Biden’s campaign tax plan. The report says that about 180 companies have reported revenues at these levels in recent years, and about 45 of these firms would have paid minimum tax if Biden’s plan had worked, the report said. The Treasury reported $ 300 million a year. Tech Giants, Apple, Microsoft, parent company of Google Alphabet Inc., Facebook Inc. and Intel Corp. have had tens of billions of pre-tax profits in the past 12 months at average effective tax rates. According to Bloomberg, teenagers, according to Bloomberg, had large incomes during that period, and effective tax rates ranged from 22% to 23%, according to Biden’s plan, Berkshire Hathaway Inc. Warren Buffett and Verizon Communications Inc. repeal key elements of Trump’s 2017 corporate tax reform, including base dilution and abuse tax, or BEAT. The measure, which is designed to punish companies that transfer profits offshore, has been criticized for taxing some inappropriate transfers in the absence of tax evasion strategies. The Treasury said it plans to replace BEAT with SHIELD, which means discontinuation. harmful inversions and the termination of low-tax development. This will prevent companies from withholding payments to their affiliates in countries with tax rates lower than the 21% rate for offshore profits. The plan will also include additional penalties for companies trying to move their headquarters to another country to avoid the US tax network. The Biden plan also calls for the elimination of all subsidies specifically for oil and gas in the tax code, including deductions for drilling costs. The Treasury Department estimates that about $ 35 billion will be raised over the next decade (information on the affected companies starts in the third paragraph. The earlier version adjusted the level of corporate tax revenues in the OECD countries). To find out more about similar articles, visit us. Subscribe now to stay up to date with the most trusted sources of business news. © 2021 Bloomberg LP
Crude Oil May 21 
