Because the budget request incorporates several proposals put forth by the administration over the past few weeks and months, it includes several proposed changes to the tax code we have already talked about.

It includes an increase in the corporate tax rate to 28 percent and a global minimum tax that would add U.S. taxes to those of foreign countries so that the final tax bill would always equal about 21 percent. The idea is that this would discourage companies from “locating” headquarters or recording profits in countries like Bermuda, where everyone knows they are not actually located, because Bermuda and other tax havens charge almost nothing in corporate taxes – for this very reason. According to the budget, increasing the corporate rate would decrease the deficit by $406.5 billion over the next five years, and revise the Global Minimum Tax regime, disallow deductions attributable to exempt income, and limit inversions would produce $247.7 billion in new revenue during that period.

The administration proposes eliminating tax preferences for oil and gas companies, worth $17.8 billion during the next five years.

The Biden Administration also proposes increasing the IRS budget, specifically in enforcement. The budget would provide $15.4 billion additional money for compliance over the next five years. According to the budget, this would increase revenues by $25.3 billion during the same period.