Yellen's Proposal to Revolutionize Corporate Taxation

President Biden is proposing a substantial increase in the rate of corporate taxation as part of his infrastructure plan, bumping the headline rate up from 21 percent to 28 percent. This is actually below where it was before 2017, when the headline rate was 35 percent, but given the number of loopholes in the tax code, very few corporations actually paid full whack back then. If Biden's idea is passed, the effective rate of U.S. corporate tax will depend on what happens with those loopholes in Congress, which is not yet clear.