U.S. President Joe Biden speaks about jobs and the economy at the White House in Washington, April 7, 2021.
Kevin Lamarque | Reuters
The Biden administration’s proposal to raise the corporate tax rate could weigh on tech companies or firms with operations concentrated in the U.S., according to Goldman Sachs.
The proposed rate hike would help pay for the administration’s $2 trillion infrastructure plan.
The White House has floated several tax increases to offset most of the budgetary strain of the new spending. These proposals include hiking the corporate tax rate from 21% to 28%, as well as applying a 15% minimum tax on book income and repealing various fossil fuel subsidies.
The investment bank examined Biden’s American Jobs Plan to determine which sectors could see upside, or downside, if the White House is able to persuade enough lawmakers to pass the legislation.