Joe Biden wants to finance his investment plan with a rise in the corporate tax

Joe Biden wants to finance his investment plan with a rise in the corporate tax

Raising corporate taxes seems to have become the answer to all questions of financing or reimbursement. Whether in France to repay the Covid debt or in the United States, where Joe Biden wants to finance his investment plan through this.

A rise in corporate taxes in the United States

Janet Yellen, US Secretary of the Treasury, announced on Tuesday, March 23, 2021 that the Biden administration wanted to fund the $ 3 trillion investment plan, in part through increased corporate taxes (CIT). The investment plan planned by Joe Biden aims to “ build back better »The United States by improving the country’s infrastructure.

So, during a hearing before the House of Representatives, Janet Yellen said that President Biden’s administration wanted to increase corporate tax from 21% to 28%. « We are witnessing a global race to pull down corporate taxation and we hope to end it She later added.

A current rise

France is also considering an increase in corporate taxation. The Minister of the Economy Bruno Le Maire has also decided to rely on this proposal to finance the repayment of the Covid debt, estimating Monday March 22, 2021 in front of the deputies: ” If tomorrow (…) companies return to growth, have additional growth, and therefore that corporate tax revenues are increasing, would it not be effective, Would it not be fair to devote part of the increase in this corporate tax (…) to the repayment of the Covid debt? ”

Currently, French corporation tax is, at the normal rate, between 28% and 31%, i.e. almost 10 points higher than that of the United States. However, if France and the United States wish to increase this IS, a group of 250 large bosses and representatives of SMEs believes that such an initiative could ” to compromise »Economic recovery.

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