Janet Yellen has called for a “mutually beneficial” tax increase to pay for infrastructure costs in corporate America, saying President Joe Biden’s কোটি 20 million plan would increase GDP by 1.6 percent by 2024.
The U.S. Treasury Secretary made the remarks as the Biden administration tried on Wednesday A reaction shoots This is the latest from the business Economic package, Which seeks to plow about $ 2.5tn in corporate tax increases as well as more than t 2tn in government investment in the economy.
“America’s corporate tax system has long since collapsed. Similarly, we’ve thought about imposing corporate taxes: tax reform is not a zero-sum game, with corporations on one side and governments on the other,” Yellen told reporters. “There are policies that are mutually beneficial. Win-win is an over-used phrase, but we have the real thing now. “
The U.S. Treasury Secretary and former Fed Chair stressed that the proceeds from the corporate tax hike would “turn into financing in both traditional theoretical infrastructure, and the need for a more modern kind of digital economy to operate like high-speed broadband networks.” The plan would boost U.S. economic output by 1.6 percent in four years, he said.
Yellen’s remarks came ahead of a speech by Biden on Wednesday, where the White House is expected to try to persuade the US president to reap the benefits of the plan. Gathering speed Before a tough set of congressional talks in the coming weeks.
Republicans and many business groups who are sympathetic to infrastructure spending are ignoring the issue. Corporate tax increaseThey say they will slow down the recovery and make American multinationals less competitive.
In a detailed report, the U.S. Treasury said the proposal would raise the U.S. corporation tax to 26 percent and keep a minimum of 15 percent tax on book income above a company’s regular tax liability.
Treasury officials said book income, which is the profit reported to investors, is often higher than taxable income to U.S. tax authorities.
The Beadon administration wants to double the rate at which foreign earnings are raised from 10.5 percent to 21 percent and cut U.S. tax exemptions claimed by companies that pay “related parties” under the lower tax jurisdiction.
Officials added that they would strengthen “anti-reverse” rules that would allow companies to change their tax havens through their M&A activities and give new tax incentives for exporters to focus on domestic research and development instead of Trump-era tax breaks.