President Joe Biden has proposed an increase in the United States’ Global Intangible Low-Tax Income (GILTI) tax, which applies to a category of foreign income for U.S. multinational businesses. 

The proposed American Jobs Plan Act would raise the GILTI tax “from 10.5 percent to 21 percent, calculate GILTI on a per-country basis, and eliminate the exemption of the first 10 percent return on foreign qualified business asset investment (QBAI).”

A study produced by the Seidman Institute at Arizona State University’s W. P. Carey School of Business and Ernst & Young’s Quantitative Economic and Statistics Team (QUEST) concludes that an international tax increase on U.S. multinational companies operating in Arizona could create substantial economic uncertainty—and place up to 47,000 Arizona jobs at risk over the next five years.

The GILTI tax “is specifically targeted at the income…

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