Time to Talk Taxes

Time to Talk Taxes

Austin has consistently made headlines for the luring of top tech and businesses to our city because of our culture, beautiful city and business-friendly environment. 

To continue to develop and attract tech talent and employers, there are measures to be taken to advocate for and cultivate an environment that keeps Austin as a top business destination.   

A key component is understanding the implications taxes at both the federal and state level could have on our industry. While discussions in Washington, D.C. continue to develop around federal spending, let’s look at two common taxes that could see increased rates.

Global Intangible Low Tax Income

The Global Intangible Low Tax Income, or GILTI rate, is a tax mechanism that was part of the 2017 Tax Cut and Jobs Act designed to discourage multinational companies from shifting profits outside of the United States to areas with lower tax rates. With proponents in Washington looking to further increase the GILTI rate, below are some consequences that could come from such action: 

Corporate Tax Rate

Similar to GILTI, some members of Congress view an increased corporate tax rate as a means to raise revenue to support government spending programs. Currently, the US corporate tax rate sits at 21%, however, discussions of increasing it could impact businesses of all sizes as we navigate these fragile economic times. A decision to increase the corporate tax rate could:

As conversations in Washington around taxes continue to unfold, we will be working to keep an eye on how these potential changes to federal taxes like GILTI and the corporate tax rate could impact the greater Austin tech and business communities.

Share this post: