Biden Tax Plan Meant to Align With OECD Global Minimum Tax Pact

The revamped White House tax and spending plan released Thursday attempts to bring U.S. taxes on foreign income into alignment with the recent global tax agreement.

The draft legislation would raise the U.S. minimum tax on foreign income—known as global intangible low-taxed income (GILTI)—to 15%, the same as a global minimum tax rate that 136 countries agreed to earlier this month. Thursday’s bill also makes other changes that bring the U.S. tax more into line with the new global tax regime.

On the international tax provisions, the bill appears to take its cues from a September proposal by the ...