This is how Biden proposes raising taxes to pay for his new stimulus plan focused on infrastructure

The president, Joe Biden, has presented this Wednesday an ambitious investment plan of two trillion dollars to redesign the infrastructures that he hopes to pay for through a rise in taxes on the richest people and, above all, large companies. 

Donald Trump reduced this tax on corporate income from 35% to 21% after arriving at the White House, and now Biden hopes to raise it to 28% and thus be able to recover the money invested in his new plan over the next few months. 15 years without skyrocketing the public debt.

To prevent companies from shifting their profits abroad to avoid taxes, a global minimum tax of 2% would be imposed.

The tax code would also be updated so that companies cannot merge with foreign companies and avoid taxes by moving their headquarters to a tax haven.

And among other provisions, it would increase Internal Revenue Service (IRS) audits of corporations.

Biden intends to obtain additional income through that global minimum tax of 2%, calculated country by country "to affect profits in tax havens," according to the White House, and with a mandatory rate of 15% on the accounting income of all firms listed on the Stock Exchange, which will include the benefits obtained in all countries of the world.

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The president also wants to remove a corporate tax break on the first 10% of internationally produced profits and end tax preferences for fossil fuel producers. 

The first tax increases would be launched next year, if Congress approves their plan (Republicans in the Senate have already advanced that they could vote against it), and it could be complemented with an increase also to the richest citizens (those who earn over $ 400,000 a year), going from 37% to 39.6%, according to The New York Times.

Tax collection forecast

• Increase in business tax: 695,000 million

• Global minimum tax increase: 495,000 million

• Repeal of the tax loophole for income from intangible assets: 217,000 million

• End to fossil fuel tax breaks and anti-investment measures: $ 54 billion.

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Biden's plan also offers a tax credit to communities of color and low- to middle-income families and businesses to invest in natural disaster infrastructure and relocation assistance.

Jen Psaki, the White House press secretary, said Tuesday that Biden believes that "the most responsible thing" is to pay for infrastructure through taxes rather than borrowing.

The White House also alleged the tax increases as a matter of fairness, noting that 91 Fortune 500 companies paid zero dollars in federal corporate taxes in 2018.

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According to the government, this plan will bring public investment back to 1960s levels. Once introduced, the plan now requires approval from Congress, where it is likely to face opposition from Republicans.

"It seems like the president has an insatiable appetite to spend more money and raise people's taxes," Rep. Steve Scalise said in an interview.

With information from Efe, The New York Times, CNBC and AP.