Corporate Tax

FirstFT: Home Democrats increase corporate tax price by 26.5%

World updates

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House Democrats want to cut Joe Biden’s proposed tax hikes on corporate income and capital gains as part of the $ 2.9 trillion tax hike to pay for the president’s social safety net expansion.

The draft tax plan, presented to the Financial Times, circulated among members of the House of Representatives Committee on Means and Ways Committee on Sunday, proposing that the U.S. corporate tax rate would rise from the current 21 percent to 26.5 percent – less than 28 percent stage proposed by Biden this year.

The Democrats in the House of Representatives also want to increase the tax paid by investors on capital gains from the current 20 percent to 25 percent – well below Biden’s planned tax rate of 39.6 percent.

However, House Democrats also proposed a 3 percent surcharge on incomes greater than $ 5 million a year, which would target the wealthiest US households. Biden did not support such a surcharge.

What do you think of the Democrats’ plan to raise taxes to pay for the safety net build? Email me at gordon.smith@ft.com and let me know your views. Thanks to all of the thoughtful responses to my question last week about Biden’s plans to mandate workplace tests and vaccines. You can find out more about returning to the office below.

Five more stories on the news

1. Beijing wants to dissolve Ants Alipay Chinese regulators want to disband Alipay, Jack Ma’s Ant Group’s super app with more than a billion users, and create a separate app for the company’s highly profitable lending business in the fintech giant’s most visible restructuring to date.

2. Front runner in the successor to Merkel criticized in TV debate Olaf Scholz, front runner in the German election campaign, was heavily attacked in the second television debate yesterday evening, just two weeks before an election that will decide who will succeed Angela Merkel as Chancellor.

  • Go deeper: Olaf Scholz is the quota favorite for the successor to Angela Merkel as Chancellor, an extraordinary development, since a few months ago the Social Democrats were between 14 and 16 percent in surveys.

3. Horta-Osório strengthens its grip on Credit Suisse The new chairman of Credit Suisse, António Horta-Osório, has taken on more leadership roles at the Swiss bank, which insiders refer to as a seizure of power that has diluted the authority of CEO Thomas Gottstein.

4. Ireland fails to enforce EU law against big tech According to privacy advocates, Ireland does not apply EU data protection laws to US big tech companies. Google, Facebook, Apple, Microsoft and Twitter all have their European headquarters in Dublin, making Ireland’s Commissioner for Data Protection the leading EU regulator responsible for holding them accountable on data protection issues.

5. Argentina’s ruling Peronists suffer a heavy defeat in the midterm elections President Alberto Fernández’s left-wing Peronist party suffered a heavy defeat in the mid-term elections in Argentina on Sunday, a result that suggests that the government’s Senate majority is in jeopardy in the November elections.

Coronavirus digestion

  • The failure of the US Bringing Covid-19 cases under control is forcing companies to roll back plans and revise forecasts. Meanwhile, several Republican governors plan to challenge President Joe Biden’s vaccination mandates in court.

  • the United Kingdom dropped plans to introduce vaccination cards into nightclubs and mass events in England this month. The country has also terminated a € 1.4 billion vaccine deal with French company Valneva because the company violated its obligations under the deal.

  • Economists say Europe is in the sweet spot of recovery from the record post-war recession, but optimism will be dampened as risks mount.

  • Luxury automaker Daimler and BMW plan to limit the volume of premium models they ship, even as the industry-wide chip shortage subsides, in order to generate hefty price increases.

Follow our Coronavirus Live Blog and sign up for our Coronavirus Business Update to receive regular updates on the impact of the pandemic on the global economy.

The day ahead

Merits Oracle, the company linked with the purchase of Tik Tok’s US business last year, today announced its first quarter results.

Hearings US Secretary of State Antony Blinken testifies before the House Foreign Affairs Committee holding the first meeting on the US withdrawal from Afghanistan.

Prince Andrew’s trial in US sexual assault lawsuit A New York court is due to hold a pre-trial conference today with Virginia Giuffre who claims Prince Andrew sexually abused her. Guiffre, a victim of the late sex offender Jeffrey Epstein, is suing the prince in a civil case. The prince rejects the allegations.

Elections in Norway Voting in the parliamentary elections officially begins today, although several major cities opened their polling stations the day before. The center-left opposition is expected to come to power after a race dominated by the future of oil and the climate crisis.

Join leading innovators and policy makers in #TechFT live discussions on politics, strategy and innovation for the future of technology from September 30th to October 1st. Free for all #TechFT subscribers.

What else we read

The US needs to make homes more affordable – and more available A decade after the subprime crisis, residential construction is still at the center of the US economic divide, writes Rana Foroohar. Just as investors drove the housing boom before the financial crisis, they also drove the post-pandemic house price spike. Rana argues that we need a housing policy that makes houses what they should be: housing.

Getting back to work: the new lessons for managers As employees return to work, some trends are emerging in how companies are dealing with change. “Everyone is still working on it,” says a consultant who supports companies in organizing flexible working time models. “I think we have not yet reached a point where we can say that there is an approach that works well.” Separately, the FT is conducting a back-to-work survey as part of a reporting project. If you would like to participate, please fill out this form.

Fears of stimulus are increasing the demand for ETF oases Growing concerns about the possibility of a sharp spike in inflation around the world are pushing some investors to switch to bond-based exchange-traded funds designed to protect against currency depreciation. This story is part of a special report from the ETF. You can keep up to date with the latest industry news from our ETF hub.

Investors spread across Chinese markets A clash has erupted between two of the world’s most famous investors, reflecting a growing divide on Wall Street in raising money in China. As fund managers cool off on the world’s second largest economy, BlackRock announced last week that it raised $ 1 billion for its first mutual fund in China.

FT Master in Management For the eleventh time in a row, the University of St. Gallen in Switzerland took the top spot in the Financial Times 2021 ranking for Masters in Management courses. Check out the full leaderboard here.

The struggle for control of football The plan to hold the World Cup every two years is part of the battle for the supremacy of the major clubs or national teams in the football world. At its core, it is a struggle for money and power, with the governing bodies of sport fighting for supremacy. To find out more about the sports shop, subscribe to our weekly scoreboard newsletter.

Books

The world may not have known it needed a vampire novel spelled out as a long-form poem, but now there’s one in the form of Baby Teeth (Little Island, £ 6.99) by Meg Grehan. It’s one of several titles in our roundup of the best new science fiction books available.

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