Senate Finance Committee Chairman Ron Wyden (D-OR) released draft legislation to overhaul parts of the U.S. international tax code as part of the $3.5 trillion social spending package currently taking shape in Congress.
The tax changes, which Wyden said would ensure “mega-corporations pay their fair share,” would undo key tax breaks from the 2017 GOP tax law enacted during the Trump administration.
“To right the ship, we’re ending incentives to ship jobs overseas and closing loopholes that allow companies to stash their profits in tax havens,” Wyden said. “Instead, we’re going to reward companies that invest in the United States. Our draft legislation would generate critical revenue to pay for priorities in Democrats’ reconciliation bill, and encourage additional investment in our country and its workers.”
Congressional Democrats are working to draft the $3.5 trillion social spending package and have vowed that it will be paid for with new taxes on corporations and the wealthy, while sticking to Biden’s pledge not to raise taxes on anyone making less than $400,000 per year.
Republican tax writers were critical of Wyden’s discussion draft, with Senate Finance Ranking Member Mike Crapo (R-ID) saying it would hurt U.S. businesses competing in the global marketplace. “The tax increases would overwhelmingly apply to U.S. companies, including manufacturers and small businesses,” Crapo said. “As a result, the United States would become a far less attractive location for jobs and investment, and American companies would once again be targets for foreign takeovers and inversions.”
