The White House recently announced two major policy proposals that have the potential to completely restructure key components of the U.S. economy. The first, known as the American Jobs Plan, seeks to rebuild and preserve the country’s infrastructure and energy grid. The second, known as the Made in America Tax Plan, is designed to adjust the corporate tax code to help pay for the American Jobs Plan and incentivize job creation in the United States.
Find out what you need to know about the new tax policy proposal.
The Made in America Tax Plan is a new policy proposal that was issued by the Biden administration on March 31, 2021. According to a fact sheet issued by The White House, the proposed reform will change the corporate tax code to spur American job growth and investment in the U.S.
A recent report from the Institute of Taxation and Economic Policy (ITEP) found that 91 Fortune 500 companies didn’t pay federal taxes in 2018. The Made in America Tax Plan aims to make changes that ensure corporations don’t use other countries as tax havens, among other adjustments.
With that in mind, corporate taxation is a major political issue that often inspires partisan rhetoric from both sides of the aisle. The Biden administration will likely see pushback from both Republicans and more moderate Democrats.
The Biden administration anticipates the Made in America Tax Plan will generate more than $2 trillion in tax revenues over the next 15 years. It also estimates that the tax funds raised will pay for the provisions and policies included in the American Jobs Plan.
The most notable proposed tax changes include:
It’s very possible that the Made in America Tax Plan won’t impact many small and mid-sized organizations. However, if passed by Congress and signed into law, the plan would be used to fund the American Jobs Plan, which will almost certainly change how many U.S. employers do business in some form or another.
With this in mind, it’s far too early in the legislative process for HR teams and organizations to do much about the proposed policies included in the Made in America Tax Plan. Still, employers should stay on top of the latest updates as the proposal is refined. If passed, the federal government would overhaul the tax system in a way that could improve infrastructure, add jobs into the marketplace, and more.