WASHINGTON – President Biden’s proposed corporate tax hikes under a $ 2.3 trillion infrastructure plan have sparked a skeptical response from some Democrats who prefer to borrow to pay for investments or levy other levies like gasoline tax instead , in order to do this.
The proposal would raise the corporate tax rate from 21% to 28% and increase taxes on companies’ foreign profits. The White House said the tax hikes would cover the cost of the $ 2.3 trillion package over 15 years, with the money used to improve roads, bridges and transit systems, as well as expanding broadband access and countless other efforts is expended.
Republicans have largely opposed Mr Biden’s proposed tax hikes, but some Democrats are raising their own questions about the plan. With very close majorities in the House and Senate, Democrats will need almost unanimous support in their party to move the package forward without Republican votes, and many lawmakers are envisioning possible changes to the plan.
House Transportation and Infrastructure Committee Chairman Peter DeFazio (D., Ore.) Said he did not feel it was necessary to pay the full cost of the plan through tax increases. Mr DeFazio said he would support an increase in gas and diesel taxes to pay for the new investments over time, as well as more credit to cover some of the costs.
“If you borrow money for current consumption instead of borrowing money for investment, that’s different,” he said.