Bloomberg
Yellen Says Tax Plan Recoups $2 Trillion in Overseas Profits
(Bloomberg) — Treasury Secretary Janet Yellen unveiled a detailed sales pitch for the Biden administration’s proposed new corporate-tax code, a plan that she said would be fairer to all Americans, remove incentives for companies to shift investments and profit abroad and raise more money for critical needs at home.Expanding on the tax proposals released last week in President Joe Biden’s $2.25 trillion economic package, the Treasury said the changes, over a decade, would bring back about $2 trillion in corporate profits into the U.S. tax net, with about $700 billion in federal revenue streaming in from ending incentives to shift profits overseas.All told, the extra tax take of about $2.5 trillion over 15 years would pay for Biden’s eight-year spending initiative, which is aimed at infrastructure, green investments and social programs that would support a larger labor force, according to the Treasury. Few major corporations would be untouched, with tech giants such as Apple Inc. and Microsoft Corp. likely to pay more.“Our tax revenues are already at their lowest levels in generations, and as they continue to drop lower we will have less money to invest in roads, bridges, broadband and R&D,” Yellen told reporters during a phone briefing, referring to research and development. “By choosing to compete on taxes, we’ve neglected to compete on the skill of our workers and the strength of our…
