In 2021, DARES will focus on advancing the Biden Administration’s priorities for Relief and Recovery that will:
Reform corporate taxes to close loopholes and end incentives for offshoring jobs
- Raise the corporate tax rate to 28%, which would generate $727 billion for the economy in estimated revenue.
- Set a minimum tax rate of 21% on corporate offshore profits, applied on a country-by-country basis, which would generate $442 billion. Domestic and offshore tax rates should be equal — at least 28% — to discourage outsourcing and profit shifting.
- 15% minimum tax on profits corporations report to their investors, to stop firms using manipulated “taxable income” to pay little or nothing ($109 billion).
- End special tax breaks for fossil fuel production ($25 billion).
- Make it tougher for U.S. corporations to dodge U.S. taxes by adopting a phony foreign address (inverting) ($22 billion).
- Raise additional revenue by eliminating the Foreign Derived Intangible Income (FDII) deduction, which gives corporations a tax break for shifting intellectual property assets offshore, and ramping up tax enforcement on corporations.
Ensure top earners pay their fair share in individual taxes
- Eliminate tax cheating by the wealthy and corporations.
- Tax income from wealth like income from work also helps prevent loopholes.
- For people making more than $1 million a year, or the richest 0.3% of taxpayers, eliminate the nearly half-off tax discount they currently get when they sell assets at a profit.
- Tax the wealthy on the accumulated gains of assets they inherit—gains that now go completely untaxed—unless the assets are donated to charity.
- Close a loophole that lets owners of certain businesses avoid self-employment taxes that pay for health care. Revenue raised: $360 Billion (Congressional Budget Office estimate)
- Prohibit Excess Business Losses. Revenue raised: Roughly $100 Billion (Joint Committee on Taxation).
- Close the Like-Kind Exchange real estate loophole:
Extend key tax credits (EITC, CTC) for working families
- Biden is asking for recent change to these important programs to be made permanent to:
- Maintain the value of the Child Tax Credit to $3,000 for children ages 6 through 17, and $3,600 for children under age 6.
- Ensure families get a tax credit for as much as 50% of their spending on qualified child care for children under age 13, up to a total of $4,000 for one child, or $8,000 for two or more children. The recent law also made the credit fully refundable.
- Extend the increases to the earned income tax credit, or EITC, including roughly tripling the maximum amount for workers who do not have children — for beyond 2021.