The D.C. infrastructure saga has continued, this time with a one-on-one between West Virginia Sen.
In his meeting Wednesday with the top Republican negotiator on infrastructure, President Joe Biden reportedly insisted that the GOP must accept about $1 trillion in new spending as part of any deal but indicated that he was open to shifting his corporate tax proposals in an attempt to win bipartisan support. "This is a component of what he's proposed for a pay-for that he's lifting up as a question as to whether they can agree to that", Psaki said. Republicans have said that rolling back their 2017 tax cuts, which reduced the corporate rate from 35% to its current level, is a non-starter.
The source told FOX Business that Biden is willing to drop a plan to raise the corporate tax rate to 28% from 21% - a move that would roll back a key part of the GOP 2017 tax overhaul - and instead offered to pay for the infrastructure plan by imposing a higher global minimum rate of 15% on US companies' foreign earnings. The Washington Post first reported the offer. The GOP plan calls for using unspent Covid relief funds and user fees for drivers to cover the costs of the infrastructure package.
"Let's reach an agreement on infrastructure that's smaller but still significant, and fully paid for", he said in Paducah, Ky. Many companies can avoid taxes or minimize their bills through a series of credits, deductions and other ways of structuring their income and expenses. And the 15% minimum corporate tax "has been criticized by Republicans and some economists for being an inefficient way to increase taxes", Justin Sink and Laura Davison report at Bloomberg News.
"This is not a new idea". Callas said the minimum tax would mostly hit firms such as electric utilities and telecoms that make substantial capital investments, as well as companies that rely on paying their employees with stock.
During an event commemorating the Tulsa Massacre on Tuesday, President Joe Biden claimed that the Democratic Party "only has a majority of effectively four votes in the House and a tie in the Senate, with two members of the Senate who vote more with my Republican friends".
There are some signs the Biden administration is opening to acting unilaterally to pass the American Jobs Plan: On Sunday, Transportation Secretary Pete Buttigieg said negotiations will continue in private this week, but he identified June 7 as an endpoint for possible deal-making.