White House Fails to Address Joe Manchin’s Concerns About Corporate Tax Hikes

The Republican Party was willing to approve a shortened version of the infrastructure plan promoted by Joe Biden

President Joe Biden is willing to push through his $2 trillion infrastructure plan without Republican support if he can not attract bipartisan cooperation, according to Energy Secretary Jennifer Granholm.

US President Joe Biden rolled out his infrastructure plan last week, particularly asking to increase the corporate tax rate from 21% to 28%, while also skyrocketing the global minimum tax on US corporations, to 21% from 13%. His predecessor as president, Donald Trump, and Republican lawmakers cut the corporate rate from 35% to 21% in 2017.

Billed "The American Jobs Plan", Biden's proposal would heavily invest in rebuilding the nation's crumbling infrastructure and shift to greener energy over the next eight years.

Biden's plans have drawn criticism from both Republicans and Democrats, including Democratic Senator Joe Manchin, whose support could be critical to ensuring passage in a Senate split evenly between the two parties.

The White House conceded on Monday that Senate Democrats such as Sen. "That will all need to be weighed ... with leaders in Congress".

President Joe Biden on Monday defended his proposal to increase corporate taxes to help pay for a big boost in USA infrastructure spending, saying he is not at all anxious the tax hike would harm the economy.

Roy Blunt chairman of the Senate Republican Policy Committee
Roy Blunt chairman of the Senate Republican Policy Committee

But the International Monetary Fund backed the overall idea of richer countries using taxes to reduce inequalities exposed by the COVID-19 pandemic, including progressive income taxes, inheritance and property taxes, and taxes on "excess" corporate profits.

"If I don't vote to get on it, it's not going anywhere", he said.

"The president's plan basically says, look, if we're going to be serious about economic opportunity in all parts of the country, if we're going to be serious about equity and making sure the persistently poor areas of the country are brought up to speed, we're going to have to invest in broadband and we're going to have to invest in the broadband it gives people the same advantage regardless of where they live". "Now's our chance to make infrastructure choices for the future that are going to serve us well in the 2030s and on into the middle of the century".

President Biden has argued that the infrastructure plan aims to create millions of jobs.

Granholm said Biden would prefer that his plan have Republican backing but, if that does not work, he would likely support using a procedural strategy called reconciliation to allow Democrats to pass it in the Senate.

Since Mitch McConnell, President of the Republican Senators, has promised to "fight" the Biden program "at every stage".



Other news