Corporate Tax

Biden mentioned he was contemplating reducing the corporate tax hike to fund the institution plan

WASHINGTON – To enlist Republican support for President Joe Biden’s infrastructure and employment plan, the White House signaled Thursday that it was ready to negotiate its commitment to raise the corporate tax rate.

The Washington Post reported that Biden has offered to cut his proposal to reset the highest corporate tax rate to 28 percent – where it was before a Republican-backed tax cut in 2017 – from the current 21 percent, which the opposition party strongly opposes.

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Citing sources familiar with the discussions, the newspaper said the offer was made in a private meeting at the White House with Republican Senator Shelley Moore Capito on Wednesday as the president seeks opposition support for his spending plans.

However, White House press secretary Jen Psaki said Biden has not completely given up on the corporate tax hike, which he sees as a “sustainable wage”.

However, she said that “these pay-fors can be postponed,” suggesting that the current negotiations may have some flexibility.

“We have a number of resources to move the president’s ideas and proposals forward,” she said, noting that Biden is due to speak to Capito again on Friday.

“The president remains true to his goal of signing a law by the summer.”

However, the Washington Post said Biden would instead focus on a 15 percent minimum tax targeting businesses that are profitable but pay little tax to the federal government.

Biden has long insisted that businesses “pay their fair share” and has vowed not to raise taxes on Americans who earn less than $ 400,000 a year.

Both corporate tax measures were included in his draft budget, unveiled last week, which showed that increasing the top tax rate would raise at least $ 86 billion from 2023, while a minimum tax would increase $ 10-15 billion annually.

The U.S. leader, campaigning for his ability to work with Republicans, has proposed a more than $ 2 trillion plan to invest in roads and bridges to create jobs while funding green technology, broadband -Expand internet access and day-care centers and repair the water supply for households.

However, Republicans are pushing for a smaller and narrower bill limited to traditional public works.

Psaki declined the counter offer to pay part of the expenses through increased fees.

“We are not going to go down the path of user fees or any other area that would increase taxes for the American people.”

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Capito’s staff did not respond to a request for comment from AFP.

Biden also supports a globally implemented minimum corporate tax of 15 percent to prevent multinational corporations from protecting their profits in low-tax countries.

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