US authorities wanted to earn 2.7 trillion dollars at combinations of two tax maneuvers: international and national. Such a count was led by Minister of Finance, Janet Yellen, who quotes Bloomberg.
We are talking about two reforms. The first implies an increase in the income tax from 21 to 28 percent as part of a new package of stimulating measures from the government declared on April 1 by President Joe Biden. As a result of these changes, Washington is going to replenish a two trillion dollars budget over the next 10 years.
The second reform concerns the recent supply of Yellen, which called on the authorities of all countries of the world to introduce tax on corporate profits and maintain it no less than the minimum level. Such a measure is directed against offshore jurisdictions that attract foreign capital by tax breaks. According to the calculations of the Minister of Finance, by the beginning of the next US decade, it will be possible to maintain about 700 billion dollars in the form of a profit tax paid in the country. In this case, companies will be unprofitable to open offices in offshores and keep profits on their balance.
“Our tax revenues are already at the lowest in several generations, and since they will continue to fall below, we will have less money to invest in roads, bridges, broadband, research and development,” said Yellen.
The Biden’s plan provides for the allocation of subsidies to citizens, companies and banks for a total of two trillion dollars. Increasing the income tax rate partially levels the reform of the previous president of Donald Trump, which lowered it from 35 to 21 percent.