Democratic presidential candidate Joe Biden outlined a $3.2 trillion tax plan to fund his policies on Wednesday.
The former vice president proposed a series of changes that would draw in more tax money from wealthy corporations, including raising the corporate tax rate from 21 percent to 28 percent.
Biden would also seek to place a 15 percent minimum tax on companies’ pre-tax income, ensuring companies — such as Amazon and Netflix — that have reported profits to investors but paid little or no federal income taxes, pay at least some tax.
Currently, these companies have been able to avoid paying federal taxes by using various tax breaks or carrying over losses from years in which they weren’t profitable.
Biden’s team estimated this tax would raise $400 billion throughout the course of a decade by collecting taxes from about 300 companies.
In order to prevent companies from shifting profits overseas and outsourcing, Biden’s proposal supports sanctioning countries that “facilitate illegal corporate tax avoidance and engage in harmful tax competition.”
Biden would also seek to increase a global minimum tax on offshore corporate income known as Global Intangible Low-Taxed Income, which was established in the 2017 Republican tax bill, from 10.5 percent to 21 percent.
Stef Feldman, Biden’s policy director, said the proposal was meant to make clear to voters how he plans to pay for his policy proposals and that he “wants to make sure that he’s putting proposals out there that he can actually deliver on for folks.”
“He thinks that in many ways it makes it easier for people to buy into the idea that we should be making these investments because they respond to it along the lines of, ‘Oh, you know what, it does seem like wealthy people can pay a little bit more if what we get is this,” Feldman said.
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