Introduction to The American Jobs Plan and The Made in America Tax Plan

During a presentation in Pittsburgh yesterday, President Biden spoke on the first part of his vision for America and unveiled his American Jobs Plan (AJP or the plan), a $2.3 trillion infrastructure spending plan for the next decade. 

Included in the AJP’s broad agenda are plans for the rebuilding of roads, bridges and water systems, expanding broadband internet access, funding research and development, improving housing and education facilities from pre-school through college, upgrading veterans hospitals and other federal buildings, along with funding additional programs.  The AJP is the first of at least two large programs to be proposed by President Biden and his administration; a second is expected to be released later in April and is believed to target childcare and healthcare programs.  

The funds to pay for the AJP are to be generated from proposed changes to corporate income tax provisions.  These changes are projected to raise $2 trillion dollars over 15 years.  The tax portion of the overall AJP is being called the Made in America Tax Plan.  

A broad summary of both prongs of the initial proposal was released by the White House in a Fact Sheet  

The Made in America Tax Plan proposes the following general provisions:   

  • Increase the corporate tax rate from 21% to 28%.
  • Enact a corporate minimum tax rate of 15% based upon reported profits to investors.
  • Reform and increase the Tax Cuts and Jobs Act tax assessed on Foreign Derived Intangible Income.   
  • Work with other countries to propose a worldwide minimum tax system to “end the race to the bottom” on global corporate tax rates.    
  • Strengthen provisions on profit-stripping strategies that shift profits to lower-tax-rate countries.  
  • Aim to prevent corporate inversions.
  • Deny deductions related to offshoring jobs.  
  • Eliminate current tax preferences (subsidies, favorable deduction rules, and special foreign tax credits) for the fossil fuel industry. 
  • Restore Superfund Trust Fund assessments on industries generating pollution.
  • Increase IRS enforcement on corporations.

The AJP, as laid out in the Fact Sheet, is essentially a broad policy declaration reflecting many of the president’s talking points made during his election campaign.  Specific details and the final shape of this spending and tax reform plan will take months to work through and negotiate.   Predictably, there are lawmakers who believe the package does not go far enough on spending, while others call the costs too high.  

Further, the tax plan details released yesterday don’t include any proposed changes to individual income taxes; these are expected to be detailed with the release of the second spending plan.  

We will continue to monitor and write about the ongoing policy changes involving tax reform, and its impact on businesses and individuals.  Future articles in this series will be provided as additional ideas are presented by lawmakers, specific bills are proposed that may (or may not) ultimately become law, and as more details emerge.  

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2021 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Tax Credits for Electric Vehicle Charging Stations
Introduction to The American Jobs Plan and The Made in America Tax Plan
2021 Standard Mileage Rates
Tax BY Kirk Mitchell
IRS Extends Federal Individual Tax Filing Deadline. State deadlines to follow?
Tax, TCJA BY Courtney Davies
IRS Releases Section 4960 Final Regulations
Construction Industry Opportunities for Extended Employee Retention Credit
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

[email protected]
p:412.261.3644     f:412.261.4876

Map of Columbus Office
Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

[email protected]
p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102

[email protected]
p:571.380.9003