"Biden Corporate Tax Top Rate Likely Compromised at 25%"

[Asia Economy Reporter Yujin Cho] Internet media Axios reported on the 18th (local time) that the corporate tax rate hike proposed by U.S. President Joe Biden is expected to be compromised at around 25%.

President Biden had planned to raise the corporate tax rate from 21% to 28% to fund the second phase of the economic stimulus package, the infrastructure plan, but the media reported that due to strong opposition from Democratic senators against a sharp increase, an agreement is likely to be reached at this level.

Raising the corporate tax rate from the current 21% to 25% would secure an additional budget of $600 billion (671.64 trillion KRW) over the next 15 years, but it falls short of President Biden's plan to increase $2.25 trillion over 8 years.

Axios also reported that among Biden's corporate tax hike proposals, increasing the tax rate on profits earned overseas by U.S. multinational corporations from the current 10.5% to 21% is expected to pass the legislation smoothly.

Companies are preparing lobbying efforts to block both tax rate increase proposals. Last week, survey results on the impact of the government's corporate tax rate hike on corporate competitiveness were released, targeting 178 company representatives.

The White House has not publicly withdrawn the 28% increase proposal but is said to be willing to compromise.

Axios revealed that 20 senators, equally divided between the two parties, are discussing initial infrastructure project items and budget funding plans.