While the outlook in Congress remains uncertain, companies should pay attention to these tax proposals as they develop.
President Biden and Treasury Secretary Janet Yellen have made the case for major tax changes in speeches and reports, and recently laid out the first broad swath of proposals addressing corporate tax changes, with tax changes for individuals to come shortly. Although the debate over the design of the international tax system is not new, there is an increased focus on tax issues both as a way to pay for the Administration’s other priorities and to address what some view as inequities within the system. And while narrow Democratic congressional margins mean the path to enactment will be challenging, Democratic leadership does have the ability to move tax legislation forward using budget reconciliation, which can come together quickly, making it an area companies need to monitor.
This publication provides a look at the rationale for tax changes, details and differences among plans, what the changes would pay for, and the outlook in Congress.