Trump-Era Tax Rule Benefiting Some Multinationals May Get Revised Under Biden

WASHINGTON—A Trump administration regulation that cut the tax bills of companies such as Philip Morris International Inc. and Sealed Air Corp. could be poised for reversal in 2021 as the Biden administration tries to deliver on its campaign promise to raise taxes on corporations.

The rule, which gives some corporations a path out of a U.S. minimum tax on foreign earnings, has drawn criticism from progressives, including Sen. Ron Wyden of Oregon, the top Democrat on the Finance Committee.

“These regulations let megacorporations choose how they want to be taxed,” he said. “They could take the massive tax cut Republicans gave them, or they could take an even bigger tax cut the Treasury Department pulled out of thin air.”

If Democrats don’t take control of the Senate after Georgia’s runoff elections in January, regulatory changes present the clearest paths to one of President-elect Joe Biden’s campaign promises: higher taxes on U.S. companies’ foreign operations.

The Biden transition team declined to comment. It would likely take months for the new administration to hire Treasury Department officials, make a decision and follow the procedures needed to revise or repeal the regulation.