Corporate tax rates

The proposal would modify the large cut made in 2017 to the corporate tax rate in the Tax Cuts and Jobs Act (TCJA). Specifically, it would increase the tax rate for C corporations up to 28% from 21%—still substantially less than the pre-TCJA rate of 35%.

Moreover, the effective global intangible low-taxed income, also known as GILTI, rate would go up to 14%. Overall, with other proposed modifications, the effective GILTI rate would increase to 21%.

Stock buyback excise tax

The IRA established a 1% excise tax on the fair market value when corporations purchase back their stock. This was meant to reduce the difference in the tax treatment of dividends and buybacks.

The new 2024 tax plan would quadruple the tax to 4%.