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September 30, 2021

Andrew Campbell 

U.S. companies worry about the new corporate tax rate from 21% to 26.5%, which may be harmful to company investment. The investments include but not limited to research and development.

Other than corporate tax, there are still other increased taxes, such as Cisco’s tax on intangible income from foreign markets. This tax rate is planned to rise from 13.125% to 20.7% by the Democrats.

From another perspective, Biden originally seeks for the new corporate tax rate at 28%. The Democrats flatten the slope by 26.5% and look for other incomes to compensate. The gentle slope also helps to pass the proposal more smoothly in U.S. congress. So far, this act is under discussion and yet not reached the final decision.