United States – President Unveils American Jobs Plan, Made in America Tax Plan
US – American Jobs Plan, Made in America Tax Plan
The U.S. President, Joseph Biden, has unveiled the “American Jobs Plan,” a $2 trillion infrastructure package, alongside the “Made in America Tax Plan,” which would reform the U.S. corporate tax system the proposals announced on March 31. These plans do not contain many tax elements relevant to international assignees or global mobility programs.
During a March 31, 2021 speech in Pittsburgh, Pennsylvania, U.S. President Joseph R. Biden unveiled the “American Jobs Plan,” a $2 trillion infrastructure package, alongside the “Made in America Tax Plan,” which would reform the U.S. corporate tax system.1 These plans represent part of President Biden’s two-pronged “Build Back Better” recovery plan. Prior to President Biden’s speech, the White House released a fact sheet on these proposals.2
WHY THIS MATTERS
Notably, the proposals announced on March 31 do not contain many tax elements relevant to international assignees or global mobility programs. However, proposals relating to individual taxation are expected to be part of the second prong of the recovery plan to be announced in the coming weeks. For details on President Biden’s individual and estate tax campaign proposals that may be included in upcoming plans see the KPMG Report: Biden Administration and the 117th Congress; possible tax legislation, published by KPMG LLP (U.S.).
The American Jobs Plan
The Biden Administration has described the American Jobs Plan as consisting of four key elements:
- Investment in transportation infrastructure, such as roads, bridges, and rails.
- Investment in “how we live at home,” including infrastructure relating to clean water; universal access to affordable broadband; upgrading and reorienting power infrastructure; and investment in repairs of schools, community colleges, child-care facilities, federal buildings, and the veteran hospital (VA) system.
- Investment in “care infrastructure,” including through measures to reduce the waitlist for seeking care for family members and through making sure that essential health-care jobs are “well paying.”
- Investments in research and development (R&D), clean energy R&D, incentives for domestic production in certain areas, and workforce training and apprenticeships.
The American Jobs Plan also includes tax incentives intended to advance its policy goals.
See KPMG’s TaxNewsFlash: President Biden announces plans with major business tax proposals for a chart highlighting key tax proposals referenced in the fact sheet’s discussion of the jobs plan.
The Made in America Corporate Tax Reform Plan
The fact sheet states that, along with the American Jobs Plan, President Biden “is proposing to fix the corporate tax code so that it incentivizes job creation and investment here in the United States, stops unfair and wasteful profit shifting to tax havens, and ensures that large corporations are paying their fair share.” It further describes the proposed changes as fundamentally reforming the way the tax code treats the largest corporations and helping to “bring an end to the race-to-the-bottom on corporate tax rates that allows countries to gain a competitive advantage by becoming tax havens.”
See KPMG’s TaxNewsFlash: President Biden announces plans with major business tax proposals, for a chart highlighting key tax proposals in the Made in America Corporate Tax Reform Plan as described by the fact sheet.
1 See "Remarks by President Biden on the American Jobs Plan" (March 31, 2021) at: https://www.whitehouse.gov/briefing-room/speeches-remarks/2021/03/31/remarks-by-president-biden-on-the-american-jobs-plan/ .
The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.
The information contained in this newsletter was submitted by the KPMG International member firm in the United States.
To subscribe to GMS Flash Alert, fill out the subscription form.
© 2023 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://kpmg.com/governance.
GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
Connect with us
- Find office locations kpmg.findOfficeLocations
- Social media @ KPMG kpmg.socialMedia
Stay up to date with what matters to you
Gain access to personalized content based on your interests by signing up today