The systems were aimed at returning companies' deferred offshore income to the United States at lower tax rates, where those profits could be invested in American jobs.
"We need an global tax system that rewards companies making investments here in the USA, particularly in cutting-edge technologies that will dictate the future success of our economy and ability to create good-paying jobs", said Senator Mark Warner.
The senators' plan focuses on increasing the tax rate on US multinational corporation foreign earnings and setting it on a country-by-country basis.
Wyden said he believes that such a global minimum corporate tax envisioned under the Biden plan can work alongside the reforms proposed by the Democratic senators, as long as Treasury Secretary Janet Yellen can get a "good multinational deal struck at the OECD". Their plan also aims to create incentives to invest in innovation in the United States rather than offshoring factories, restoring full credits for domestic investments and curtailing the largest corporations from eroding the US tax base.
He told host Hoppy Kercheval that he could not support raising the corporate tax rate to 28% from 21%, which has been outlined by Biden's team.
Democrats need every Senator on board for every proposal with the 50-50 split in the chamber but Joe Manchin says he won't support 28%.
"As the bill exists today, it needs to be changed", Manchin said in a radio interview. But in practice, the Democrats said, they created new incentives for companies to invest more overseas to take advantage of new exemptions. "We have to be competitive, and we're not going to throw caution to the wind".
Former President Donald Trump slashed the corporate tax rate to 21% from 35% - a global high - during his time in office, arguing that the rate disadvantaged the USA on the global stage and led many American business to relocate offshore. "And it will not raise a penny tax on a family making less than $400,000 a year".