Biden’s campaign to raise taxes on large corporations – Noticieros Televisa

The President of the United States (United States), Joe BidenLaunch a crusade against Large companies Who wants to increase the tax rate to it from 21% to 28%, and who is seeking to expand it into the international arena with his proposal tax Global minimum of companies that this week submitted to the G20.

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The new plan seeks to break the “race to the bottom” on corporate tax issues internationally, in the words of Treasury Secretary Janet Yellen, and to create “stable and fair tax systems.”

Therefore, Yilin has already presented an initiative to Twenty Group (Which brings together major advanced and developing economies) to set a minimum global corporate rate of 21% and limit evasion maneuvers through tax havens.

Biden intends to apply a minimum tax of 15% on accounting income, which is reported to investors, as opposed to income that is reported to Hacienda American.

It also strengthens regulations to avoid so-called “financial investments,” by which large companies seek to establish their headquarters in the country with more favorable tax treatment and direct part of the benefits accrued in the United States to reduce payments from them. Taxes.

Biden’s gamble surprised him with his ambition, especially with Washington’s renewed will for international leadership.

180 degree change

“Also positive is the enchanting effect this could have: the option to assemble a financial model based on defending true economic value and not artificial and artificial competition for those who pay less. Labor protection in front of major investors. A 180-degree shift,” explained Susanna Ruiz, head of tax justice at the organization Oxfam, a non-governmental organization, for Efe.

It also implies reversing one of the main inheritances left by his predecessor, Donald Trump (2017-2021), who made steep tax cuts one of his economic policy axes while lowering the corporate tax rate from 35% to 21%.

“This reduction was more than what the companies were looking for: although the corporate tax base was supposed to be broadened by eliminating deductions, many large corporations still did not pay taxes,” the University of San Diego assistant professor said, Alan Jane.

In his opinion, the most effective decision would be to put the company rate at 28%, but “more likely to happen” is an increase of 25%.

Given this situation, some US companies could try to relocate, but according to Professor Jane, the productivity gains due to the infrastructure modernization plan for Biden, Valued at more than $ 2 trillion, it should generate net employment gains.

Open to negotiation

Aware of the need to garner broad support given the lowest Democratic majority in the Senate, Biden is a veteran politician with more than three decades in the making. U.S. CongressHe also demonstrated his practicality by showing his willingness to negotiate.

“Settlement is inevitable. We will be open to good ideas in negotiations in good faith. But we will not be open to doing anything.” Biden said this week in his defense of his plan, “Inaction is not an option.”

With this tax increase, which will raise $ 2.5 trillion in 15 years, the president is seeking to finance his massive plan to modernize the aging infrastructure in the United States, especially in the transportation system, and move it to an economy powered by renewable energy. .

The debate will now move to Congress as Republicans have already asserted that while they can support investment in infrastructure, on a smaller scale, what they do not want is an increase in taxes.

“If we can agree on defining the infrastructure, there may be a way forward.” Senate Republican Minority Leader Mitch McConnell told a news conference this week, “But it should be funded reliably, and not by the complete abolition of the 2017 tax reform.” .

Positive welcome from major companies

The proposal, which has traditionally been opposed to any tax increase, was welcomed by large companies, and countries suffering the consequences of reduced federal investment.

In fact, the e-commerce giant Amazon supported the Biden administration’s offer, stating that it would “require concessions from all parties, whether in the details of what it includes and how it will be paid.”

“We support an increase in the corporate tax rate,” Amazon chief Jeff Bezos, who rarely makes public statements, said in a statement, expressing his confidence that Government Congress reaches a “balanced” compromise that “maintains or improves America’s competitiveness.”

For his part, California Gov. Gavin Newsom, who announced that the plan is for Biden It would be a “game-changer” for his state, the most populous in the United States.

As an example, he cited the promotion of the use of clean transportation through a network of electric vehicle charging stations, and incentives to purchase such cars would be “critical” to improve air quality and deal with the climate crisis in California.

With information from EFE.

RAMG