During his presidential campaign, Joe Biden proposed that any corporation with an income of $100 million or more pay a minimum 15-percent tax.
In his $2.3-trillion infrastructure plan, Biden has raised that threshold to $2 billion and would allow companies to take deductions for research and development, green energy, and affordable housing.
That higher threshold screens out all but 180 U.S. corporations, and only 45 of them would pay the 15-percent minimum tax, according to Biden administration estimates.
Even then, some would pay less than 15 percent because of definitions of “income” that vary between tax law and accounting standards, deductions permitted under tax law, and arcane accounting rules.
TREND FORECAST: Should Biden raise taxes to pay for his trillion-dollar programs, the mega-corporations will mega-cheat their way out of the tax hikes as they are champions at doing… and the heavy tax burden will fall on what is left of America’s middle class and small businesses.
The flood of trillions into the economy will generate the “Biden Bounce,” which we forecast will be temporary.
When the equity markets crash – which they will – the reality of the damage caused by the unprecedented lockdowns of entire nations, which have destroyed numerous business sectors such as tourism, hospitality, restaurant, conventions, trade shows, entertainment, theatre, concerts, etc., will usher in the “Greatest Depression.”
