Zoom conference call with tax policy expert Kyle Pomerleau

Changes to the corporate tax code proposed by the Biden administration only begin with the hike of the headline rate from 21% to 28%. In total, the new tax burden will run at about 0.60% of GDP. About half of the tax burden will come from subtle changes to the treatment of foreign income, especially that deriving from intellectual property. The tax rate on such income will rise, but at the same time it will be calculated one country at a time, instead of in the aggregate, which eliminates beneficial portfolio effects. The impact will differ sharply company to company, but the greatest burden will fall on intellectual property-intensive technology companies. There would be no impact on the ability to repatriate overseas profits back to the US. An alternate minimum tax on book income will cause some companies to pay more taxes in certain years, but would have little net effect over time.