Good morning. Welcome to Axios today. It's Thursday, April 8th. I'm Nailibutu. And here's how we're making you smarter today.

The rules of international travel, while vaccinated, and debunking misinformation about Colorado's voting costs.

But first, President Biden's corporate tax plan is today's one big thing.

Yesterday, the Treasury Department released details of President Biden's proposal to increase corporate taxes over the next 15 years.

This would raise $2.5 trillion to pay for Biden's massive jobs and infrastructure plan.

Felix Salmon is Axios' chief financial correspondent and here to break all of this down for us. Good morning, Felix.

Good morning, Nailibutu.

How much would these proposals change the current corporate tax rate?

It would go up from 21% to 28%, which is more or less where it was before Trump cut it at the beginning of the Trump administration.

I wonder if you can explain something to me. It would take 15 years to raise the money to cover 8 years worth of infrastructure plans. How does that work?

It would take a bit longer. So we're going to need to borrow some of the money or we're going to need to raise some more taxes somewhere else.

There's definitely been talk about the carried interest tax loophole capital gains taxes on individuals.

There are other tax sites which the government might want to do and which might help pay for the infrastructure plan.

But right now, you're absolutely right. This on its own doesn't look like it's going to 100% cover the cost of infrastructure.

But the fact is that no one really expected that it would. The infrastructure bill is important and it can be paid for in part by tax hikes and in part by just borrowing.

States often compete with each other when it comes to corporate tax rates saying, hey, move here.

Our corporate tax rate is lower. How does this work at a global level? Where does this put the US in terms of competition with other countries?

The US now has an extremely low corporate tax rate compared to other countries.

Official corporate tax rate, as we just mentioned, is 21%. The effective corporate tax rate if you're a large US multinational and you're looking at your US profits is about 7.7%, which is extremely low.

And it's only about half what it used to be just a few years ago.

So there's a lot of room for that to come up and to become much more normalized in terms of what most other countries charge.

But there are other countries obviously that charge even less. Ireland is famous as being a tax haven Switzerland, the Bahamas.

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