(POLICY NOW). – Democratic leaders of the Congress they proposed significant changes in the way the United States taxes large multinational corporationss and thus achieve more income needed to finance the broad President Joe Biden’s infrastructure plan.
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Democrats primarily seek Transforming Former President Donald Trump’s 2017 Tax Reforms to remove what they consider to be incentives for companies to relocate their operations abroad and transport their profits to countries that are tax havens.
Analysts estimate that the fiscal plan will likely primarily affect the technology and pharmaceutical companies.
Three Democrats from Senate: Ron Wyden of Oregon, Sherrod Brown of Ohio, and Mark Warner of Virginia presented a plan that includes higher taxes on foreign earnings, and tougher penalties for companies that move revenue out of the country to avoid paying US taxes.
“Many companies they didn’t even get the benefits back. Those who did, most of it was spent on share buybacksWarner said.
“This framework is a first step in allowing us to find novel and creative approaches that solve the problems of the current system and provide long-term certainty for businesses and stability for federal revenue so that let’s continue to be globally competitive”Added the senator.
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Through the Democratic proposal, The US could raise up to $ 1 trillion from big business over the next 15 years by requiring them to pay higher taxes on foreign earnings, according to analysis of similar plans.
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To achieve transformation, Democratic lawmakers they have the support of the Biden White House.
Janet Yellen, Biden’s Secretary of the Treasury, advocated for a harmonized minimum corporate tax rate in the world‘s major economies, seeking the international cooperation that is crucial to finance the $ 2.3 billion infrastructure proposal of the agent.
In his first major speech on international economic policy, Yellen marked the return of the United States to the “global stage.”
“Together, we can use a global minimum tax to ensure that the global economy thrives on the basis of a more level playing field in the taxation of multinational corporations“Yellen said this Monday.
He added that the objective of the global rate would be “to ensure that governments have stable tax systems that generate sufficient income to invest in essential public goods and respond to crises, with all citizens fairly sharing the burden of financing the government. “