US Made in America Tax Plan

The Made In America Tax Plan proposes to reform the US corporate tax system to address profit shifting and tax incentives. The reforms include:

• Raising the US corporate income tax rate to 28 percent.
• Strengthening the global minimum tax for US multinational corporations.
• Reducing incentives for foreign jurisdictions to maintain ultra-low corporate tax rates by encouraging global adoption of robust minimum taxes.
• Enacting a 15 percent minimum tax on book income of large companies that report high profits but have little taxable income.
• Replacing incentives that reward excess profits from intangible assets with more generous incentives for new research and development.

• Replacing fossil fuel subsidies with incentives for clean energy production; and
• Ramping up enforcement to address corporate tax avoidance.

Irish concerns are centred on the differential between the increased US corporate tax rate proposed at 28 percent, and the reformed GILTI rate and the availability of a credit for tax paid in Ireland along with the Made In America Tax Plan call for a global minimum tax rate of 15 percent.  The proposals contained in the Made In America Tax Plan must be backed by the US Congress.