President Joe Biden pressed Friday on growing criticism from Republican lawmakers for his proposalwill hurt the economy. His remarks come as Some of the largest corporations in the U.S. didn’t pay federal taxes on profits last year, and in some cases even received tax breaks.
“Demanding American companies to only pay their fair share will not hold back the economy at all,” said Biden after commenting on the latest job report in the White House on Friday. “It will make the economy work better. It will generate more energy.”
As part of theMr. Biden, who was introduced this week, proposed raising the corporate tax rate from 21% to 28%. The plan also includes provisions to strengthen the minimum tax for U.S. multinational corporations, calls for a 15% minimum tax on income companies reporting to investors, and removes tax credits and subsidies to the fossil fuel industry. This has not been well received by Republican lawmakers, who argue that doing so would slow the economy and hurt employment growth amid the pandemic recovery.
However, a recent report by the Institute for Taxes and Economic Policy showed that at least 55 of the largest corporations in the United States have paidin their final year of filing despite massive gains last year – nearly $ 40.5 billion amid the pandemic.
The study looked at big names like FedEx, Nike, Dish, Duke Energy, and Salesforce. It found the 55 companies would have paid a total of $ 8.5 billion for the year if they had paid the current corporate tax rate. Instead, they received $ 3.5 billion in tax breaks.
The report concluded that the President and Congress could take important steps towards a “fairer or more sustainable tax system” by cutting some of the tax breaks listed in their report or reintroducing a “minimum tax” after which companies have at least one Part of the taxes have to be paid in profitable years.
Trending news More
White House press secretary Jen Psaki quoted the report Friday afternoon during her daily press conference, saying the government believes such companies can pay more to fund the investment “once in a generation.”
While the new study covers which companies posted taxes, it isn’t clear how much each company actually paid. The Securities and Exchange Commission requires publicly traded companies to disclose their pre-tax earnings, income tax paid on profits, and factors that significantly affect their tax expenses.
Biden faces an upward battle when it comes to getting his infrastructure and tax plan through Congress, with Democrats holding such a slim majority. On Friday he hit the GOP Congress answer.
“If the Republicans decide we need it, but we just won’t pay for it, it will only increase the deficit,” said Biden, referring to the criticism many Republicans have in their opposition to. He also noted that Republicans have been talking about the need for infrastructure for years.
“I think Republican voters will have a lot to say about whether we get a lot of it done,” said Biden.