Democrats have promised a revamp of the current international tax system to ensure that large multinational corporations pay their “fair share,” stop offshoring jobs, and are incentivized to invest in domestic growth. The international tax overhaul would also partially finance an infrastructure bill. The Biden administration has proposed the $2.3 trillion American Jobs Plan. House and Senate Democrats are working on their own infrastructure proposals as well.

Both the Biden administration and the Democratic members of the Senate Finance Committee (SFC) have unveiled proposals for international tax reform. On April 5, SFC Chair Ron Wyden (D-OR), as well as Sens. Sherrod Brown (D-OH) and Mark Warner (D-VA), released an international tax framework (SFC Framework) as a starting point to discussions on revamping the current system put in place by the 2017 Tax Cuts and Jobs Act. The Biden administration’s Treasury Department followed a couple of days later, releasing more details on the Made in America Tax Plan (MATP) on April 7, which was first mentioned as part of the American Jobs Act (AJP) on March 31. Treasury Secretary Janet Yellen subsequently released an op-ed in The Wall Street Journal on April 8, with more details on a global minimum tax, a key proposal in the MATP. Currently, neither the Biden administration nor the SFC has provided any legislative language, but the proposals have included a number of important details.