Wealth Management: What CRE Opportunities Await if the American Jobs Plan is Enacted?

Some in corporate America are critical of Biden’s proposed plan because it would be paid for raising the corporate tax rate from 21 percent to 28 percent. Nevertheless, corporations would still pay less under this proposal than they paid prior to the Trump Administration’s 2017 tax cuts and the benefits of infrastructure improvements to corporate interests would more than justify the higher taxes, Biasi says. He notes that many of the companies that would benefit the most from infrastructure improvements already pay little or no corporate income tax. But they would not be able to avoid the proposed 21 percent minimum tax on U.S. companies’ foreign income.

According to a study by Institute of Taxation and Economic Policy, the 2017 tax reform also expanded corporate loopholes and tax incentives. As a result, 60 of the nation’s largest corporations paid no income tax in 2018, including Amazon, Chevron, Delta Airlines, Eli Lilly, General Motors and IBM, among others. Another 56 companies paid on average 2.2 percent in taxes, and 379 other profitable companies paid an effective federal income tax rate of 11.3 percent. Read more