White House Tax Plans 2021

Plan Highlights

The White House on March 31st, 2021; releases the American Jobs Plan that calls for action and expresses concern over infrastructure specifically bridges, roads, electric grids, water systems, care-giver workers, collective bargaining organizations, high-speed internet and housing. Additional issues include the status of the United States in Manufacturing, Research and Development (R&D), and training and how the Nation competes in these regards.

The plan asks to fix economically significant bridges, 20,000 miles of highways, roads and main-streets, 10,000 smaller bridges, replacement of buses, rail cars, station repair, airport renewals, and expansion of rail and transit systems into new communities.

Elimination of lead pipes, funding for monitoring and remediation of Per and Polyfluoroalkyl substances (PFAS), capping orphan oil/gas wells and abandoned mines.

Building of High-speed broadband infrastructure to reach every American. It hopes to prioritize networks owned, operated by or with local government, non-profit, and co-operative provider affiliation in order to support service to entire communities and less pressure to turn profits. Bring price transparency to increase competition amongst internet providers and further solutions for reducing internet prices.

Create good jobs building, retrofitting, affordable, accessible, energy efficient homes, commercial builds, schools, childcare, veteran facilities. The administration hopes to achieve 100% carbon-free electricity by 2035. Creation of a targeted investment tax credit hopes to incentivize building of high-voltage capacity power lines, by encouraging spending of capital. The plan hopes for Grid Development Authority at the Department of Energy. 24/7 clean power is in hopes to be purchased by the Federal government for federal buildings.

Looks for the best and diverse minds in America to head creation of innovations of the future. Promises that workers will build and manufacture in every part of America with good training. Requirements for goods and materials that are US made, with logistics that include U.S. flagged and crewed vessels. Made in America Tax Plan encourages manufacturing activity within borders. The plan targets investment in U.S., profit sharing halt, and tax havens. The plan estimates a total $2 trillion investment over the decade.

AJP also looks to increase America’s EV market with incentive/ grant programs for state and local governments and private sector participants in creation of a 500,000 EV Charger system by 2030. For consumers, point of sale rebates and tax incentives when purchasing an EV. Electrify 20% of yellow school bus fleet while also calling for replacement of 50,000 diesel vehicles. Electrify Federal fleet such as those vehicles used with the United States Postal Service.

$25 billion is requested from Congress for airports specifically the Airport Improvement Program which includes FAA asset upgrades, multimodal connections, terminal renovations, and Car-free access to air travel that is afforable and convenient. $17 Billion is requested for ports on the coast, for entry, ferries and inland waterways; the plan hopes to make the U.S. a global leader in clean freight and aviation.

New and better jobs for caregiver workers. His plan will provide home and community-based care for individuals who otherwise would need to wait a greater amount of time to receive. Creation of a new program for projects with opportunities for equity, environment-friendly and affordable access. Inspire basic research, a specific example given is advanced pavements that recycle carbon dioxide.

Tax Code Hopes

Mentioned in the plan are hopes for tax code changes. Current Tax code is said to be beneficial to corporations that outsourced jobs and collect international profits for up to 10% foreign asset returns, and all thereafter taxed at half the domestic rate. The plan calls to increase minimal tax on U.S. corporations to 21%, including a country-by-country basis when relevant. Elimination of Foreign Derived Intangible Income. Also included, is a proposition to restore Superfund Trust Fund payments from polluters to assist in cleanups. Increase in funding to Internal Revenue Service to enact more enforcement against corporations including more scrutiny of suspect tax maneuvers. An additional enforcement initiative, with a broader impact, will be announced in the coming weeks that addresses tax evasion among corporations and high-income Americans.

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