New Details About Biden’s $2 Trillion Tax Plan Unveiled—Here’s What We Learned


The Treasury Department on Wednesday released its analysis of President Biden’s $2 trillion plan to raise taxes on big corporations to help pay for his ambitious infrastructure spending proposals—here’s what’s new. 

Key Facts

Biden’s proposed 15% minimum tax—designed to prevent large corporations from using credits and deductions to skirt paying their fair share of taxes—would only apply to corporations with more than $2 billion in income as reported to shareholders, rather than the $100 million threshold Biden proposed during his campaign.

Assuming Biden’s other tax proposals are passed, just 45 companies would be liable for the new minimum tax, according to the Treasury Department’s analysis.

Key Background

Biden’s Made in America tax plan contains many of the tax changes he promised to fight for during his campaign, including raising the corporate income tax rate from 21% to 28%. It would also impose a 21% minimum tax on foreign income of U.S. companies, and the White House will also push other countries to adopt a global minimum tax to prevent multinational companies from shifting profits, production and jobs overseas. Biden’s plan would also eliminate tax subsidies for the fossil fuel industry and create incentives for clean energy production and roll back elements of President Trump’s 2017 tax-cut legislation.

Crucial Quote

“America will compete on our ability to produce talented workers, cutting-edge research, and state-of-the-art infrastructure, not whether we have lower tax rates than Bermuda or Switzerland,” Treasury Secretary Janet Yellen said Wednesday, according to multiple news reports. 

Big Number

37%. That’s the share of the profits of Forbes Global 2000 companies that come from U.S. firms, the Treasury Department noted in its report, compared to the fact that the U.S. accounts for only 24% of global GDP. The Treasury noted that while U.S. profits have soared to historic highs as a percentage of GDP, corporate taxes collected have dropped to 1% of GDP since the Trump tax cuts, from their 2% of GDP level  from 2000 to 2017. By contrast, the average corporate tax collected in developed countries equals about 3% of GDP. Biden’s plan is designed to not only raise the level of taxes on domestic profits, but to also make it more difficult for U.S. corporations to avoid taxes by shifting production or jobs abroad.

Chief Critic

Big businesses have said they object to parts of Biden’s agenda. “The Administration’s proposed global minimum corporate tax rate, however, threatens to subject the U.S. to a major competitive disadvantage,” Business Roundtable CEO Joshua Bolten said in a statement earlier this week.


“We’re supportive of a rise in the corporate tax rate,” Amazon CEO Jeff Bezos said in a statement Tuesday, which wasn’t specific about just how high a rate Amazon would find acceptable.  Bezos said Amazon supports the Biden Administration’s focus on improving American infrastructure and recognized that the investment will require “concessions from all sides.” Amazon has been the target of broad criticism from politicians and others for using credits and deductions to avoid paying federal income tax.

Further Reading

Biden’s Infrastructure Plan May Slow Economy Down, Moody’s Says—But Not For Long (Forbes)

Yellen Pushes For Global Minimum Tax Amid Biden Infrastructure Blitz (Forbes)

Here’s What’s In Biden’s $2 Trillion Infrastructure Plan (Forbes)

Who Will Be The Biggest Losers From Biden’s Tax Hikes? (Forbes)

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