By now we have been all educated on the proposed tax plan that President Biden had in place that would primarily affect corporations. After Janet Yellen had analyzed this plan, it does seem that this is the best possible solution to help rebuild our economy in a positive way. With the changes that have been made, it is estimated that almost $2 trillion would be recouped from profits overseas. Already our economy has a tax revenue that has been the lowest, and would have remained the lowest in this generation if not for the new tax plan. With all the different changes happening to individual and corporate taxation, a guide like MBA Financial & Accounting Solutions is much needed. Especially after a year like we all experienced in 2020.
The key elements were the corporate tax plan that included the major jump of going from 21% to 28% for the U.S. corporate tax rate. Another factor is that all profitable companies now would not be able to use tax breaks to offset or eliminate the federal tax bills that are owed. Most companies would distribute some of their profits into their yearly dividends, but now they will not be able to get away with this typical tax offset. All profitable companies would now have to pay at least 15% on all profits that are being reported. Amazon CEO, Jeff Bezos, shared his perspective and supported all the new changes to taxation while not specifying the certain changes he supported. With global taxation rates rising, this will only benefit the global economy. Now companies will have to pay a higher tax rate on debt owed to other countries. The c-level executives of all larger tech companies, like Apple, Google, and Microsoft, all seemed in favor of the new tax changes that were being put in place by President Biden.
It is definitely interesting to see all of the changes that are being made on a global scale. With the ongoing changes in taxation, and the effects it has on the global economy, you can trust the executives at MBA Financial & Accounting Solutions to help educate on all the changes. Take advantage of our FREE tax consultation and file your taxes before the deadline.