August 20 2021

White House Summarizes Tax Reform Plan for Small Businesses

Source: IBFD Tax Research Platform News

The White House has released a Fact Sheet outlining US President Joe Biden's tax reform plan to provide greater tax fairness for small businesses. The Fact Sheet, dated 19 August 2021, is entitled "The Build Back Better Agenda Will Provide Greater Tax Fairness or Small Businesses."

To level the playing field and address the concerns of small business owners, President Biden's plan, if adopted by the US congress, will:

  • raise the corporate income tax rate from 21% to 28%;
  • strengthen the global minimum tax for large multinational corporations;
  • reduce incentives for foreign jurisdictions to maintain ultra-low corporate tax rates by encouraging global adoption of robust minimum taxes for large corporations;
  • enact a 15% minimum tax on book income of large, highly profitable corporations;
  • eliminate incentives for large corporations to offshore profits and jobs;
  • ramp up enforcement to address tax avoidance among large corporations;
  • extend the expansion of the Child Tax Credit (CTC) in the American Rescue Plan Act (ARP) (from USD 2,000 per child to USD 3,000 per child for children over the age of six and USD 3,600 for children under the age of six); and
  • permanently extend the tax credits that lowered health insurance premiums for those buying coverage through the Affordable Care Act (ACA) (

The Fact Sheet states that, according to the US Treasury Department's analysis, President Biden's plan will protect 97% of small business owners from income tax rate increases while delivering tax cuts to more than 3.9 million entrepreneurs.