Biden: "Tax Increase for Infrastructure Investment... International Corporate Tax Rate to Be Raised to 21%" (Update)

US Corporate Tax Rate Expected to Rise to 28%
Amazon Directly Mentioned, Criticizing Large Corporations' Tax Avoidance
Global Corporate Tax Rate Increase Proposed to Maintain US Business Competitiveness

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] U.S. President Joe Biden has announced plans to raise taxes, including increasing the corporate tax rate, to fund a $2.25 trillion infrastructure investment plan.

On the 31st (local time), President Biden announced the infrastructure investment plan in Pittsburgh, mentioning the intention to raise corporate taxes and addressing the issue of tax avoidance by large corporations.

President Biden promised to raise the corporate tax rate to 28%, but assured that individuals earning less than $400,000 annually would not face additional tax burdens. He also mentioned ending tax exemption benefits for fossil fuel companies.

He emphasized that the tax increase is to "ensure more equitable benefits," citing Amazon and pointing out that 91 of the Fortune 500 companies pay less tax by exploiting loopholes. While saying, "We will not punish them," he stressed the unfairness in taxation between large corporations and individuals by noting that "teachers and firefighters are taxed at a 22% rate."

President Biden also expressed his position to encourage a global corporate tax rate increase from a minimum of 13% to 21% to standardize corporate taxes internationally. This is interpreted as a measure to consider the potential decline in international competitiveness of U.S. companies due to the corporate tax hike.

He also hinted at plans to expand taxation on high-income earners.

He further emphasized the need for bipartisan support for this plan, repeatedly urging Republican approval.

This content was produced with the assistance of AI translation services.