Judy, in 2017, Republicans and then-President Trump reduced the U.S. corporate tax rate from 35 percent to 21 percent. President Biden wants to raise that to 28 percent.
He’s also calling for an international minimum tax rate of 21 percent. Now, that is meant to keep big multinational companies from doing something many have done for years, use offshore loopholes to pay fewer taxes. All told, the various tax provisions would raise $2.5 trillion over 15 years.
Jesse Drucker covers taxes and tax havens for The New York Times, and he joins me now.
Jesse, welcome to the “NewsHour.” And thanks for making the time.
So, these loopholes, these tax maneuvers, a lot of companies use them, Google and Amazon and Facebook and Apple. But what does it mean? If the corporate tax rate is 21 percent, what does it mean for what they actually pay?