President Joe Biden’s infrastructure proposal will ramp up the Internal Revenue Service (IRS) activities on business, where each business may be audited like “A decade ago… annually by the IRS” so they “pay their fair share.”
According to the proposal, the “IRS lacks the capacity to scrutinize… tax maneuvers: A decade ago, essentially all large corporations were audited annually by the IRS; today, audit rates are less than 50 percent.”
“This plan will reverse these trends, and make sure that the Internal Revenue Service has the resources it needs to effectively enforce the tax laws against corporations,” the plan reads before continuing, “This will be paired with a broader enforcement initiative to be announced in the coming weeks that will address tax evasion among corporations and high-income Americans.”
“All of these measures will make it much harder for the largest corporations to avoid or evade taxes by eliminating parts of the tax code that are too easily abused,” it continues. “This will be paired with an investment in enforcement to make sure corporations pay their fair share.”
The strategy to beef up the IRS joins Biden’s pledge to raise the corporate tax rate to 28 percent from 21 percent, higher than Communist China’s corporate tax rate at 25 percent, reducing the attraction of businesses to operate in America.
Whatever the consequence, Biden has also proposed a global minimum tax to ensure multinational corporations do not base themselves in a country that has a tax rate higher than a global minimum of 21 percent. “The President’s tax reform proposal will increase the minimum tax on U.S. corporations to 21 percent and calculate it on a country-by-country basis so it hits profits in tax havens,” the plan says.