Corporate Tax

Dealmakers flip to DC as Biden prepares to announce the corporate tax hike

Washington, DC is close to the midst of closing as both lawmakers and regulators envision big changes.

Driving messages: The main problem is taxes. President Biden is expected to push for an increase in the company’s rate to 28%.

  • Some moderate Democrats only want to raise the corporate rate to 25%.
  • Republicans generally want it to stay at 21%, but they don’t matter unless all that’s on the table is 28% and Joe Manchin is against it.
  • Biden plans to unveil his proposal in Pennsylvania next week, tells me Alayna Treene of Axios. His administration will try to get Congress to pass its bill the “normal way” over the next few months – with 60 votes in the Senate. If that fails, they use the same voting process they relied on for coronavirus relief, which only requires a simple majority to pass.

In relation to the interest carried overBiden can step over the gap and clog it at the same time.

  • Washington Post’s Jeff Stein reports that the White House is considering language that would eliminate beneficial treatment of capital gains once those gains top $ 1 million.
  • And as a double blow for wealthy dealmakers, it sounds like individual top income rates are rising too.

But wait, there is more: According to Reuters, the SEC has launched an investigation into SPACs that focus on bank risk management.

  • Biden also confirmed this week that he will nominate Lina Khan as FTC commissioner. She is best known in tech circles for a 2017 paper titled Amazon Antitrust Paradox, in which she argues that current antitrust law is out of date and needs to be updated to address potentially monopoly practices by big tech companies.
  • This follows Biden’s earlier inclusion of the antitrust agitator Tim Wu on the National Economic Council as Special Assistant to the President for Technology and Competition Policy.

The bottom line: Deal math will change.

Related Articles