The Biden Administration’s ‘Made in America Tax Plan’ through the eyes of a Dutch tax lawyer

Abstract

On March 31, 2021, U.S. President Biden released his ‘American Jobs Plan’, an ambitious proposal for large scale public investments in infrastructure and other priorities. That same day the American President announced plans to offset the costs of these investments with U.S. corporate tax increase proposals: the ‘Made in America Tax Plan’. To ensure that the tax measures envisaged would not weaken the competitive position of American businesses overseas the rest of the world is expected to tag along and join in on the envisaged American rate hikes. The Biden administration sees an opening for pushing its agenda at the tax policy discussions taking place within the Inclusive Framework of the OECD on the so-called Pillar One and Pillar Two proposals, the Blueprints of which the OECD published in October 2020. This paper discusses the ‘Made in America Tax Plan’ and its implications for the European Union and its member states, the author’s home country the Netherlands as one of these, and other countries, that is, if the U.S. tax plans were to see the light of day.