Politics Washington Post reporter explains how taxes in Biden infrastructure plan would affect multinational corporations
How Biden’s infrastructure plan could leave child care behind
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Washington Post economics reporter Jeff Stein on Monday delved into how taxes in President Biden's infrastructure proposal could dramatically change how multinational corporations operate.
While appearing on Hill.TV's "Rising," Stein noted that former President Trump's 2017 tax law, whether inadvertently or not, encouraged corporations to move their operations overseas.
"So there's going to be a lot of measures in the Democratic plans ... dramatically increasing what corporations pay on their overseas operations," Stein said.
Infrastructure plan: Republicans mobilize for showdown that will help define the Biden presidency
A defining political clash took shape Sunday over Joe Biden's latest effort to reshape the US economy, with Republicans mobilizing against a massive infrastructure plan that could put the President in historic Democratic company. © Evan Vucci/AP President Joe Biden delivers a speech on infrastructure spending at Carpenters Pittsburgh Training Center, Wednesday, March 31, 2021, in Pittsburgh. GOP office holders launched a broad assault on the package, arguing it was too expensive and was stuffed with overly partisan programs that had nothing to do with fixing roads and bridges.
Stein also said that Treasury Secretary Janet Yellen is working with the Organisation for Economic Co-operation and Development to stop the global corporate tax rate from dropping, as it has for decades in Europe, the U.S. and Asia.
"Instead of trying to just compete with these other countries, what Yellen is trying to do is coordinate an international effort in which the globe agrees to stop this race to the bottom," Stein said. "And the idea there is that even if the U.S. increases its corporate taxes, once that floor is enacted across the world, there will be less of an incentive for, you know, corporations... to go abroad."
According to Stein, this plan is an "interesting inversion" of what Democrats have typically espoused, that higher taxes don't actually cause companies to move abroad.
"Yellen is kind of implicitly acknowledging that Republicans might have a point here," Stein said.
Biden releases breakdown of what needs fixing for infrastructure plan .
Republicans slammed President Joe Biden's $2.7 trillion infrastructure plan as a 'dog's breakfast of slush funds' for Democrats as White House releases state-by-state breakdown of what needs fixing.Biden will host four GOP lawmakers - along with four Democratic ones - on Monday to discuss his massive infrastructure plan, which Republicans have criticized for containing more than traditional infrastructure projects.