Corporate Tax

Biden is selling Illinois corporate taxes as corporate opposition mounts

CRYSTAL LAKE, Ill., Jul. 7 (Reuters) – President Joe Biden pleaded Wednesday at an Illinois community college to spend trillion dollars on U.S. infrastructure, paid for by higher corporate taxes than the opposition -Building business groups.

In a speech, Biden focused on what he termed “human infrastructure” priorities that failed to make it to a $ 1.2 trillion bipartisan deal with Republicans.

The guidelines include parenting tax breaks, free preschool and community college, health care and clean energy subsidies, and 12 weeks of paid sick leave funded by corporate tax increases for US companies.

Biden said a 15% minimum tax on companies that manage to avoid paying taxes would raise $ 240 billion and use it to fund what he saw as “really expensive” plans.

“The fact is that it is paid for,” he said. “Everyone has to pay their fair share. I’m not trying to slander anyone. You just have to get into the game,” he said.

Corporations currently provide less than 10% of US tax revenue, up from nearly 40% in the 1940s.

The basic economic argument of the Biden administration is that neither corporations nor wealthy Americans pay their “fair share” to support research, education, infrastructure and workers in the world’s largest economy.

The International Monetary Fund predicts US growth of 7.0% in 2021, one of the strongest recoveries in the world from the recession caused by the COVID-19 pandemic if Biden’s plans are implemented.

Speaking at McHenry County College in Crystal Lake, Illinois, near Chicago, Biden said that Illinois has 2,374 bridges and more than 6,200 miles of highways that need repair, and that one in 10 people in the state does not have access to Has high speed internet.

The Democrats hope that most of the proposals that are not in the bipartisan bill will be subject to a budgetary mechanism that only requires a simple majority in US Congress and bypass Republicans who oppose new corporate taxes.

Senate Republican leader Mitch McConnell on Tuesday promised a “hell of a fight for the future of this country” on tax and spending. Continue reading

Biden shrugged McConnell’s comments, saying McConnell had talked about how his home state of Kentucky would benefit from infrastructure spending. “He brags about it in Kentucky,” said Biden.

U.S. business lobby groups backing the bipartisan plan are preparing to fight looming corporate tax hikes, using the same argument they used in 2017 to get Republicans huge tax cuts: higher corporate taxes mean fewer jobs.

“We don’t know what’s in this package,” said Rachelle Bernstein, chief tax advisor for a retail lobby group, of the Democrats’ bill. “But we don’t think it would be good to use a corporate tax hike to fund spending.”

Reporting by Trevor Hunnicutt and David Lawder; Letter from Steve Holland; Editing by Heather Timmons and Howard Goller

Our Standards: The Thomson Reuters Trust Principles.

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