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The Tax Foundation is the nation’s
leading independent tax policy
research organization. Since 1937,
our research, analysis, and experts
have informed smarter tax policy
at the federal, state, and global
levels. We are a 501(c)(3) nonprofit
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Details and Analysis of
American Jobs Plan
The Biden administration’s proposed American Jobs Plan (AJP) would increase
federal spending by about $2.2 trillion over 10 years, including $1.7 trillion for
infrastructure, partially funded with permanently higher corporate taxes of about
$1.7 trillion over 10 years (conventionally estimated). Using the Tax Foundation
General Equilibrium Model, we find that the combined effects of the tax changes
and spending would reduce U.S. gross domestic product (GDP) in the long run by
0.5 percent and result in 101,000 fewer U.S. jobs.
Combined Long-Run Effects of Changes in Tax and Spending
in the American Jobs Plan
Gross Domestic Product (GDP)
Gross National Product (GNP)
Full-Time Equivalent Jobs
Source: Tax Foundation General Equilibrium Model, May 2021.
Major Tax Changes in the American Jobs Plan
The American Jobs Plan would include the following major tax changes:
• Raise the federal statutory corporate tax rate from 21 percent to 28 percent.
• Raise the Global Intangible Low-Tax Minimum Tax (GILTI) from 10 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
• Repeal the foreign derived intangible income (FDII) deduction.
Impose a 15 percent minimum tax on corporate book income for firms with
over $2 billion in net income.
Federal Tax E