The fact sheet states that, along with the American Jobs Plan, President Biden “is proposing to fix the corporate tax code so that it incentives job creation and investment here in the United States, stops unfair and wasteful profit shifting to tax havens, and ensures that large corporations are paying their fair share.” It further describes the proposed changes as fundamentally reforming the way the tax code treats the largest corporations and helping to “bring an end to the race-to-the-bottom on corporate tax rates that allow countries to gain a competitive advantage by becoming tax havens.”
Refer to Exhibit B (also included in text below) for a chart listing key tax proposals in the Made in America Tax Plan as described by the fact sheet. As indicated in the chart in Exhibit B, most (but not all) of these proposals were mentioned by Biden during the presidential campaign.
As the process moves forward over the coming weeks and months, the Biden Administration may announce corporate tax proposals in addition to those identified on 31 March 2021. For example, the administration may release more proposals and provide additional technical details as part of a description of revenue proposals that Treasury is expected to issue in connection with the Biden Administration’s budget proposal. Further, Congress can be expected to add to, and to modify, proposals as it considers legislation implementing the recovery plan.
As indicated in previous KPMG reports (including The Biden Administration and the 117th Congress: Possible Tax Legislation), the narrow margin of Democratic control in the Congress presents some legislative challenges and may affect the process and details of tax legislation that might ultimately be enacted, as well as the prospects for enactment.