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President Biden unveils plan to raise corporate taxes

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TaxFyle co-founder and CEO Richard Lavina joined Yahoo Finance Live to break down how Biden's plan to raise corporate taxes will impact the U.S. economy and everyday Americans.

Video Transcript

SEANA SMITH: And we want to continue this conversation, though, about President Biden's tax plans. And for that, we want to bring in Richard Lavina. He is TaxFyle's co-founder and CEO. Richard, let's start with the potential, I guess, the economic impact that we could see if we do see higher corporate taxes. Business groups who object to this change saying that it would actually hurt investment here. Do you think a higher corporate tax rate, will it hurt the US's ability to compete for global business?

RICHARD LAVINA: Well, traditionally, we've always had a really high tax rate, right? Just going back to the point, I guess. But my big question would be after the pandemic, not so much those companies that can afford the additional 7%, 6%, or whatever it finalizes at, but how are those smaller [INAUDIBLE] with thinner markets going to fare? And coming out of the pandemic and with all the pandemic loans that we've seen, it's going to be interesting to see these smaller companies, you know, sized companies get squeezed.

EMILY MCCORMICK: Richard, I want to ask about Treasury Secretary Janet Yellen's proposal to G20 countries to implement a global corporate tax floor that could potentially address some of these issues that Seana was talking about, about corporations wanting to relocate to areas with lower corporate tax rates. And I'm wondering what you make of the implementation of that kind of proposal and whether it's something that's feasible during even the first four years of the Biden administration.

RICHARD LAVINA: It's definitely ambitious, right? The thing with taxation is, I have representation. That's why we're a democracy here in the United States and you have your elected officials to represent your beliefs. But if you have a global tax rate, it's pretty interesting. How are you going get that representation? We have a little bit of that going on right on in the EU, but this is pretty ambitious. And I don't think that it could be done in short order.

SEANA SMITH: All right, Richard Lavina is co-founder and CEO of TaxFyle. Thanks so much for joining us today.