Biden Tax Plan Proposal
Biden proposes a 10% offshore surtax penalty and a 10% onshore “Made in America” tax credit.?
The 10% penalty applies to US multinational companies that manufacture their products offshore.
Income outside the US is subject to GUILTI (GILTI is the income earned by foreign affiliates of US companies) now.
What Biden proposes is to apply tax to products and services manufactured or provided by an offshore affiliate.
The 10% “Made in America” credit is a credit for an eligible investment in the US.
There are a lot of technical details that are hard to navigate. Hopefully, this new tax plan makes it easier for US companies and the US economy.