- September 30, 2021
- Posted by: Stratford Team
- Category: Business
The Penn Wharton Budget Model found that the U.S. effective tax rate would more than triple if the reforms proposed by the House Ways and Means Committee went into effect.
Credit: Sydney Judge
A report by the Penn Wharton Budget Model found recently proposed federal tax reforms would increase tax rates on the income of multinationals.
A new proposal by the House of Representatives Ways and Means Committee seeks to increase the rate at which corporations are taxed if they don’t meet the minimum tax. The Tuesday report found that if reforms proposed by the House Ways and Means Committee went into effect, it would more than triple the United States effective tax rate on multinationals’ foreign income from around 2.1 percent to 7.4 percent, averaged by foreign income industries. This rate is higher than a proposal by the Organization for…