President Joe Biden’s administration is considering raising the U.S. corporate tax rate, Treasury Secretary Janet Yellen said Tuesday, as it looks to pay for priorities like an upcoming infrastructure plan.
“We have had a global race to the bottom in corporate taxation and we hope to end it,” Yellen told the House Financial Services Committee, adding that Washington wanted to raise the tax rate to 28 percent.
Biden is expected to soon propose a comprehensive infrastructure package designed to help the world’s largest economy create jobs and fight climate change when it recovers from the Covid-19 pandemic.
In contrast to the US $ 1.9 trillion bailout plan signed by Biden earlier this month designed to help businesses and consumers weather the downturn, the president in Congress is under pressure to offset the cost of the infrastructure package.
“I think a package of investing in people and investing in infrastructure will help create good jobs in the American economy, and changes in the tax structure will help fund these programs,” Yellen said.
US media reported Monday that Biden is considering spending $ 3 trillion on infrastructure in the US, which would be split into two bills, despite the White House denying those reports.
Any new move could face difficult opportunities in Congress, where Democrats have a narrow lead in the House of Representatives and are evenly divided with Republicans in the Senate.
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