tag:blogger.com,1999:blog-6398232680738279469.post3630664749850235778..comments2024-03-12T07:30:17.846-07:00Comments on The Tax Times: Possible Tax Changes From a Joe Biden Presidency?Ronald A. Marini, Esq.http://www.blogger.com/profile/14304486100168506240noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6398232680738279469.post-26296479898788998842020-09-10T10:11:29.425-07:002020-09-10T10:11:29.425-07:00"We will make sure our companies and jobs sta..."We will make sure our companies and jobs stay in our country, as I've already been doing for quite some time, if you have noticed," Trump said in the Aug. 28 speech. "Joe Biden's agenda is made in China. My agenda is made in the U.S.A."<br />Applying to a company's overseas tax liability, the 10% surcharge would not raise a company's overall tax rate by more than 3 percentage points — which Lovely claimed would be too small to have much of an effect.<br />"For U.S.-based firms, part of their calculus here is going to be similar to what their calculus would be under tariffs," he said. "They'll have to think about how much they'll sell into the United States."<br />But, he added, the increased tax cost of selling into the U.S. wouldn't make a U.S. factory any more profitable. <br />"What does affect domestic investment is domestic taxation," he said.<br />In the Wednesday speech, Biden also reiterated a plan to recalibrate foreign tax credits to ensure that companies have a U.S. tax payment under GILTI for income earned in any country with a tax rate lower than 21%. The current law applies GILTI on the global level, based on the company's overall effective foreign tax rate.<br />The campaign also said it would enact stronger rules against inversions, or when a U.S. company converts itself into a foreign-parented one, normally by merging with a smaller offshore entity.<br />But despite these safeguards, the Biden plan's increased focus on the foreign income of U.S. companies could still increase pressure for those companies to drop their U.S. tax residency. One potential route could be through a foreign takeover of a U.S. company.<br />Biden also pledged to nix tax deductions for costs associated with moving facilities overseas, and to sign executive orders bolstering requirements for federal departments to buy American products.<br />He would also create a "'Made in America' Office" within the Office of Management and Budget, to ensure that requirements to buy American-made products are followed and that companies do not deceptively repackage foreign goods as domestic.<br />Ronald A. Marini, Esq.https://www.blogger.com/profile/14304486100168506240noreply@blogger.comtag:blogger.com,1999:blog-6398232680738279469.post-6497778731252691432020-09-10T10:11:14.478-07:002020-09-10T10:11:14.478-07:00The details of how these latest taxes would intera...The details of how these latest taxes would interact with prior Biden campaign proposals remain unclear, and the Biden campaign did not return a request for further details.<br />The former vice president already called for changes to the tax on global intangible low-taxed income, which is currently a 10.5% levy on some of the foreign profits of U.S. companies. Biden would raise the rate to 21%, while also removing an exemption for tangible depreciable property, ensuring that it would apply to virtually all foreign income of U.S. corporate taxpayers.<br />On top of this, Biden's campaign would add a surcharge increasing the company's tax liability on foreign income by 10% if that company uses foreign manufacturing facilities to sell products into the U.S. The charge would also apply to companies that remotely supply services to the U.S., including the use of call centers.<br />But based on the campaign's announcement, it is unclear what the final effective tax rate on this would be, or whether it would be higher than the 28% overall domestic corporate tax rate the campaign has proposed.<br />Biden also said he would enact a 10% advanceable tax credit for a variety of domestic investments, including "revitalizing" or "retooling" U.S. facilities, and "reshoring" foreign production into the U.S. The credit would also apply to expansion of U.S. facilities or an increase in a company's wages.<br />Ronald A. Marini, Esq.https://www.blogger.com/profile/14304486100168506240noreply@blogger.comtag:blogger.com,1999:blog-6398232680738279469.post-68637925262241052192020-09-10T10:11:01.006-07:002020-09-10T10:11:01.006-07:00Biden Pledges A 'Made In America' Tax Poli...Biden Pledges A 'Made In America' Tax Policy<br />Democratic presidential nominee Joe Biden announced Wednesday a plan for both tax breaks and penalties to encourage U.S. companies to move or keep manufacturing jobs in America, echoing similar protectionist appeals from President Donald Trump.<br />"I'm not looking to punish businesses," Joe Biden said. "But there's a better way. Make it in Michigan, make it in America, make it in places like Warren." <br />Speaking in Warren, Michigan, behind a fleet of American-made pickup trucks, Biden blasted the Tax Cuts and Jobs Act , claiming it rewarded companies that lower their tax payments by moving facilities abroad. Biden said that aside from changes to the 2017 law, he would raise by 10% the tax payments of companies that make products abroad to sell in the U.S., and would also enact a 10% credit for domestic investments.<br />"If your big corporate strategy is to boost your shareholders' profits and your CEO's bonuses by moving jobs out of America, well, we're going to make sure you not only pay full U.S. taxes on those profits, and then we're going to add an extra 10% offshoring penalty surtax to your bill," Biden said. "I'm not looking to punish businesses. But there's a better way. Make it in Michigan, make it in America, make it in places like Warren."<br />Ronald A. Marini, Esq.https://www.blogger.com/profile/14304486100168506240noreply@blogger.com