- July 9, 2021
- Posted by: Stratford Team
- Category: Business
President Biden’s tax proposals released as part of his fiscal year 2022 budget would collect about $2 trillion in new tax revenue from businesses over 10 years. This new revenue would bring income tax collections on businesses as a portion of GDP to its highest level on a sustained basis in over 40 years.
Income tax collections from businesses include revenue from corporate income taxes levied on C corporations and the portion of individual income tax paid by owners of pass-through businesses like partnerships, sole proprietorships, and S corporations. Biden’s tax plan would raise the corporate income tax from 21 percent to 28 percent, raise taxes levied on international corporate income, and increase taxes on pass-through business income.
Using data from the Congressional Budget Office (CBO) for historical and projected corporate income tax revenue and Internal Revenue Service (IRS) data on income earned by pass-through firms, we can…
