Friday, 16 April, 2021

Biden says higher corporate taxes won't harm US economy

The Republican Party was willing to approve a shortened version of the infrastructure plan promoted by Joe Biden US corporate tax rate hike to 28% dies before it even gets a look
Ginger Lawrence | 06 April, 2021, 13:48

Republicans opened the door Sunday to supporting a pared down version of Joe Biden's $2 trillion infrastructure plan, saying concentrating on physical improvements would deliver an "easy bipartisan win" for the U.S. president.

Biden's plan would raise the corporate income tax rate after deductions to 28% from the current 21%.

Former President Donald Trump slashed the corporate tax rate to 21% from 35% - a global high - during his time in office, arguing that the rate disadvantaged the US on the global stage and led many American business to relocate offshore.

Billed "The American Jobs Plan", Biden's proposal would heavily invest in rebuilding the nation's crumbling infrastructure and shift to greener energy over the next eight years.

Sen. Joe Manchin, an influential centrist Democrat from West Virginia, warned earlier Monday that the Biden package can't pass in its current form because he and a handful of other Senate Democrats believe the corporate tax hikes proposed in the bill - created to offset its costs - are too steep.

White House press secretary Jen Psaki told reporters the Democratic president was open to discussions with Republicans and Democrats about how to fund the proposed investments. "And if the vast majority of Americans, Democrats and Republicans, across the country support spending on our country and not allowing us to lose the race globally, then he's going to do that", said Granholm.

"The net effect is 'that $1 increase in federal investment reduces investment by states, localities, and private entities by one-third of a dollar.' In other words, when the federal government invests $1, nonfederal sources reduce their investment by $0.33, which leaves a net investment of $0.67, not the full $1", the Tax Foundation announcement asserted. "That will all need to be weighed ... with leaders in Congress".

Roy Blunt chairman of the Senate Republican Policy Committee
Roy Blunt chairman of the Senate Republican Policy Committee

But the proposal announced this week faces major obstacles in Congress amid criticism from the Republican Party and business lobbies that They oppose the rise in corporate taxes with which the plan is meant to finance.

The Republican senator said he regrets the plan because it provided more funding for electric vehicle charging stations than upgrading infrastructure such as roads. "Now's our chance to make infrastructure choices for the future that are going to serve us well in the 2030s and on into the middle of the century".

He listed clean water, schools and high-speed rail as key items that also counted as infrastructure, in addition to more traditional projects such as bridges, highways and roads.

President Biden argued that the infrastructure plan aims to create millions of jobs.

Blunt, a veteran member of the Senate leadership team, nonetheless displayed a more conciliatory tone than the Republican leader in the Senate, Mitch McConnell, Who promised a few days ago to fight Biden's plan "at every step".

"What I'll say is we've got a great proposal for how we can do this that is responsible, that keeps the American economy competitive", he said.

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