US corporate tax rate was cut to 21% by former President Donald Trump
U.S. Treasury Secretary Janet Yellen on Tuesday will make the case for raising the corporate tax rate when she speaks to America’s business leaders today, in part, to help fund President Biden’s massive $2.2. trillion infrastructure spending included in the American Jobs Plan.
“We are proposing to fundamentally reform the corporate tax system. That will help offset the cost of the proposed public investments,” Yellen said in prepared remarks set to be delivered before the U.S. Chamber of Commerce’s Global Forum on U.S. Economic Recovery. “With corporate taxes at a historical low of one percent of GDP, we believe the corporate sector can contribute to this effort by bearing its fair share: we propose simply to return the corporate tax toward historical norms.”
Biden is proposing to lift the corporate tax rate to 28% after former President Donald Trump slashed it to 21% early in his term – a move that was celebrated by the business community.
The move is aimed at increasing funding for improving not only roads and bridges but also “investments in an infrastructure for the future: broadband, research and development, public transportation, modernized schools, and a more expansive network of child-care providers,” Yellen detailed.