Chair of the Council of Economic Advisers, Cecilia Rouse, said Sunday the president was proposing a corporate tax increase because it was “the right thing”.
CBS’s “Face the Nation” anchor Margaret Brennan urged Rouse on Biden’s proposal to raise the corporate tax rate from 21% to 28% or possibly higher after Rouse described Biden’s $ 2 trillion spending plan as “good for the economy.”
BIDENS 2-ton spending plan, which is billed as an infrastructure bill, spends less than half on infrastructure
“That’s 15 years higher in taxes for eight years of spending. Can you really say it’s not a cost?” Brennan asked.
Chair of the Council of Economic Advisers Cecilia Rouse speaks to reporters in the Brady Press Briefing Room of the White House in Washington, DC on March 24, 2021. Rouse said Sunday that it was “right” to levy taxes on companies so that companies “pay their fair share”. (Photo by Chip Somodevilla / Getty Images)
“I would say the reason the president is proposing these corporate tax increases is because it is spot on,” said Rouse. “He thinks we should … encourage these companies to pay their fair share.”
The Biden government last week announced a massive spending plan to be paid for with a rise in corporate tax rates and taxes on wealthy individuals. The plan would reverse some of former President Donald Trump’s 2017 tax cuts.
While Biden has promoted the proposal to address infrastructure issues, a Fox News analysis of the American Jobs Plan shows that less than $ 750 billion of spending would actually be used on infrastructure.
BIDEN CORPORATE TAX HIKE COULD DO BUSINESS, HIT US JOBS, STUDY SHOWS
Although Rouse said Biden’s proposals were “good for the American economy,” the tax foundation said the corporate tax hikes could cut GDP and cut 159,000 jobs.
“The business literature shows that corporate taxes are one of the most damaging types of tax for economic growth, as capital investments are sensitive to corporate taxes,” the group said. “Corporate income tax increases the pre-tax return firms required to pursue investment opportunities and decreases the pool of investments that businesses find useful. This lowers long-term economic performance, lowers wages and the standard of living.”
President Joe Biden will speak in Pittsburgh on Wednesday, March 31, 2021 about infrastructure spending at Carpenters Pittsburgh Training Center. (AP Photo / Evan Vucci)
The Senate Republicans vehemently oppose the spending plan. They say it is too expensive and goes well beyond infrastructure requirements, for example by replacing aging bridges and highways.
“Infrastructure is being redefined to include hundreds of billions of dollars in spending on priorities such as health care, human resource development, and research and development,” said Senator Rob Portman, R-Ohio.
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Senator Ted Cruz, R-Texas, said the $ 2 trillion plan is “really just the Green New Deal Lite masquerading as an infrastructure plan.”
“It includes far-reaching far-left priorities like attacking workers’ rights to work, a huge favor for great working class bosses,” said Mitch McConnell, Senate minority leader, R-Ky.