April 1, 2021
Tax Policy in the “American Jobs Plan”
As a way to partially pay for the American Jobs Plan (AJP), the Biden Administration is proposing eight major tax policy changes, largely tax increases, on American businesses. These changes would raise taxes by about $1.8 trillion over the next decade, writes AAF’s Director of Fiscal Policy Gordon Gray. In a new analysis, Gray outlines these changes and considers the economic impact on the U.S. business climate.
The AJP draws heavily form the Biden campaign tax proposals, which in turn drew heavily form Obama-era tax policy proposals. Recall that during the Obama Administration, U.S. firms were regularly in the news for fleeing the U.S. tax code. The AJP proposes nearly $2 trillion in business taxes at a time when the international tax environment is more competitive than ever, threatening to cede important progress made under the Tax Cuts and Jobs Act in improving the U.S. business tax climate.