- Senate Democrats are likely to aim for a corporate tax rate of 25%, Axios reported.
- It’s lower than the 28% Biden wanted to pay for his $ 2 trillion infrastructure bill.
- The current corporate tax rate is 21% after Trump cut it from 35% in 2017.
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Senate Democrats are likely to aim for a corporate tax rate of 25%, people close to the talks told Axios.
That’s less than President Joe Biden’s proposed 28% rate that he would pay for his $ 2 trillion infrastructure plan.
The current corporate tax rate in the US is 21%.
Biden reiterated his call for a 28% tax rate in a speech earlier this month while drawing up the infrastructure plan. He said this would improve the playing field after former President Donald Trump cut the corporate tax rate from 35% to 21% in 2017.
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“I’m not trying to punish anyone, but damn it, maybe it’s because I’m from a middle-class neighborhood. I’m sick of ordinary people being run away,” Biden said.
He also criticized companies that pay little or nothing in the federal government
Citing a recent report that found 55 companies paid $ 0 in income tax over the past year, including Nike and FedEx.
“It’s just not fair. It’s not fair to the rest of American taxpayers. We’ll try to put an end to this,” he said.
Biden added that he was “wide open” to negotiating a lower tariff.
White House officials and corporate groups told Reuters earlier this month that Biden, lawmakers and corporations could reach an agreement on the 25% rate.
By changing the rate from 21% to 25%, the US would raise $ 600 billion in 15 years, Axios reported.
However, it would not be enough to fund Biden’s $ 2 trillion US employment plan, which is slated to be funded in 15 years by the 28% interest rate hike, on top of a 21% global corporation tax and tax credits for businesses operating ashore are jobs.