Passing such legislation will be critical for the Biden administration, which is leading global negotiations aimed at limiting the ability of companies to minimize their tax bills by setting up offices in low-tax jurisdictions. The White House says this corporate strategy deprives economies of much-needed revenue.
House Democrats, as part of their plan to raise as much as $2.9 trillion to finance President Biden’s social safety net package, proposed raising the tax rate on companies’ overseas earnings to 16.6 percent from 10.5 percent and calculating the tax on a country-by-country basis. The plan would meet the primary commitments of the global agreement that is being negotiated through the Organization for Economic Cooperation and Development.
