News 08 Jan. 2021
Curtis Adds Africa Insider and Corporate Partner Kalidou Gadio in the U.S.
News 18 Nov. 2020
Libya Obtains Historic Victory in Setting Aside of EUR452 Million Arbitral Award
Event 31 Mar. 2021
Claudia Frutos-Peterson Speaks at Mumbai Centre for International Arbitration’s India ADR Week
News 15 Dec. 2020
Kazakhstan Secures US$1.9 Billion in Settlement of Arbitral Dispute
Publications 20 Apr. 2021
Simon Batifort and Marie-Claire Argac Publish “The Right to Raise New Arguments on Jurisdiction in Annulment Proceedings” in ICC Dispute Resolution Bulletin
Event 15 Feb. 2021
Senior Consultant Tullio Treves to deliver Key Note Speech during the Milan Investment Arbitration Week
Event 29 Mar. 2021
Claudia Frutos-Peterson speaks in CECAP seminar on Investment Arbitration and Dispute Resolution
Event 05 Mar. 2021
Claudia Frutos-Peterson Participates in LatAm Women Way in Arbitration On Air series for International Women’s Day
News 05 Feb. 2021
London partners Charles Buderi and Luciana Ricart part of team securing absolute victory for the UAE at the International Court of Justice
Client Alert 13 Jan. 2021
The U.S. Court of Appeals for the Ninth Circuit Upholds Qatar’s Sovereign Immunity in Cyberespionage Case
News 31 Mar. 2021
Partner Simon Batifort Elected to the Executive Council of the American Society of International Law
Event 23 Mar. 2021
Five Curtis Attorneys Featured at ASIL 2021 Annual Meeting
Client Alert 27 Jan. 2021
U.S. Insight: Update on Virtual Notarization (Executive Order 202.7) During the COVID-19 (Coronavirus) Pandemic (Updated: January 27, 2021)
Client Alert 30 Dec. 2020
U.S. Insight: Update on Virtual Witnessing (New York Executive Order 202.14) During The COVID-19 (Coronavirus) Pandemic (Updated: December 30, 2020)
Client Alert 01 Apr. 2021
The alert is available for download here.
President Biden announced and the White House released broad outlines of a $2.3 trillion infrastructure spending plan dubbed the American Jobs Plan (“Biden’s Jobs Plan”) funded with corporate tax increases under a plan dubbed the Made in America Tax Plan (“Biden’s Tax Plan”). According to the White House release, Biden’s Jobs Plan aims to (a) repair highways, bridges, ports, airports and transit systems, (b) address clean water, electric grid and broadbands access issues, (c) build, improve and preserve structures such as homes, commercial buildings, schools, hospital and federal buildings, (d) revitalize U.S. manufacturing and secure U.S. supply chains, and (e) create hundreds of thousands of quality jobs. The release further explains that Biden’s Jobs Plan will require goods and materials be made in America and shipped on U.S.-flag, U.S.-crewed vessels, as well as ensure that those Americans who have endured systemic discrimination and exclusion have a shot at obtaining good jobs and being part of a union. In total, Biden’s Jobs Plan will invest about $2.3 trillion over a period of 8 years and be paid for by Biden’s Tax Plan within the next 15 years, with a reduction in deficits expected in the years after.
According to the White House release, Biden’s Tax Plan aims to fix the corporate tax code to incentivize job creation and investment in the United States, stop unfair and wasteful profit shifting to tax havens, and ensure that large corporations are paying their fair share of tax. The release refers to a Joint Committee on Taxation analysis that the Tax Cut and Jobs Act (“TCJA”) enacted under the Trump administration cut the average tax rate that corporations paid in half from 16 percent to less than 8 percent in 2018. In addition, the release claims that a number of the provision in the TCJA created new incentives to shift profits and jobs overseas. While specific details of Biden’s Tax Plan have not yet been released, the broad highlights are as follows:
Set the Corporate Tax Rate at 28%
The corporate tax rate would be increased from the current rate of 21% enacted under the TCJA to 28%.
Set the Minimum Global Intangibles Low Tax Income (“GILTI”) Rate at 21%
This would be an increase from the current rate of 10.5%. In addition, Biden’s Tax Plan would calculate the tax on a country-by-country basis so that profits in tax havens cannot be shielded with tax credits from taxes paid elsewhere, as well as eliminate the exemption for 10% return allowed on investment in foreign assets.
Deny Deduction for Earnings Stripping Payments
The Biden Tax Plan aims to curtail U.S. earnings stripping by denying a U.S. deduction to foreign corporations on payments to recipients based in a country that does not adopt a strong minimum tax. This portion of the Biden Tax Plan would be a replacement for the Base Erosion Anti-Abuse Tax (“BEAT”) enacted under the TCJA and would form part of the U.S. effort to reach agreement with the OECD efforts on establishing a minimum tax.
The Biden Tax Plan would make it harder for U.S. corporations to redomicile and become a foreign corporation in order to avoid U.S. taxes.
Deny Deduction for Offshoring Jobs; Grant Credit for Onshoring Jobs
The Biden Tax Plan would deny deductions of expenses incurred in moving jobs offshore. Conversely, the Biden Tax Plan would provide a tax credit to support onshoring jobs.
Eliminate the Deduction for Foreign Derived Intangible Income (“FDII”)
The Bident Tax Plan would completely eliminate the FDII deduction and use all of the revenue generated by the repeal to expand other R&D incentives. The FDII deduction was enacted under the TCJA and currently results in a 13.125% tax rate on U.S. income from certain foreign sales.
Impose Minimum Tax on Book Income of Large Corporations
The Biden Tax Plan would impose a 15% tax on the book income of certain large corporations. The book income would be the income corporations use to report their profits to investors, and would serve as a backstop to other reforms.
Eliminate Certain Tax Preferences for Fossil Fuels and Restore Superfund Payments
The Biden Tax Plans would eliminate certain subsidies, credits and other preferences in the tax code that benefit the fossil fuel industry as well as require polluters to make payments into the Superfund Trust Fund.
Greater Enforcement of Tax Laws
The Biden Tax Plan would provide greater resources to the IRS to ramp up enforcement of tax laws against corporations and high-income earners.
Biden’s Jobs Plan and Biden’s Tax Plan are the first part of a two-part economic plan that will be negotiated with Congress in the coming months. It is anticipated that President Biden will announce in the near future a second part of the plan focused on additional objectives, such as health care and education. The next part of the plan is anticipated to be accompanied by tax increase proposals on high-income earner individuals.
Eduardo A. Cukier
Olga R. Beloded
Marco A. Blanco
+1 212 696 6000
+41 22 718 3500
+33 1 42 68 72 00
President Biden Announces $2.3 Trillion Spending Plan and Corporate Tax Increases
Associate Martin Wolff Discusses German Real Estate Transfer Tax Reforms in InstitutionalMoney