- July 7, 2021
- Posted by: Stratford Team
- Category: Business
But the recession sparked by the coronavirus pandemic has hit these workers hard, making their futures less certain. Now, just as they’re trying to recover, President Biden is actively pursuing a tax change that would stifle the success of US companies, reduce wages, and result in fewer good-paying jobs across the Northeast.
Biden’s proposal calls for doubling the GILTI. This law is a complex, broken tax that US multinational companies pay on what they sell abroad. Republicans’ intent when creating GILTI was to prevent companies from shifting their intellectual property overseas, to avoid taxes, and to keep jobs anchored in the United States.
While the broader Tax Cuts and Jobs Act of 2017 succeeded in stopping these practices — known as inversions — by making the United States more competitive, GILTI further complicated the tax code for companies with a global business model, setting many of their effective tax rates well above the current…