Biden to raise corporate tax rate to fund spending

US President Joe Biden has announced a plan to increase corporate taxes to pay for his massive infrastructure spending program. It represents a major shift from the previous policy of bolstering the economy through corporate tax cuts.

The "Made in America Tax Plan" unveiled on Wednesday proposes raising the corporate tax rate to 28 percent from 21 percent -- the rate after a tax cut by the Trump administration.

Biden plans to levy a minimum tax on big businesses that report high profits to shareholders but have little taxable income.

The plan would also strengthen the global minimum tax for companies operating overseas, and boost enforcement to tackle cross-border tax avoidance.

The Biden administration is calling on other countries to follow suit and end a corporate tax-cutting race.