Biden willing to negotiate on corporate taxes, but 'sick and tired' of non-payers

Those efforts, dubbed the "Made in America Tax Plan," would raise $2.5 trillion over 15 years, the Treasury Department said. The business lobby and Republicans have been withering in their criticism of the funding side of the proposal.

Reuters | Updated: 08-04-2021 02:07 IST | Created: 08-04-2021 02:07 IST
Biden willing to negotiate on corporate taxes, but 'sick and tired' of non-payers

President Joe Biden on Wednesday made a fiery appeal for U.S companies to foot the bill for his $2 trillion-plus infrastructure plan, but signaled an openness to negotiate how big their tax bill should be. "I'm willing to negotiate that," he told reporters. "But we've got to pay for this."

Biden faces stiff opposition from Republicans, major corporations and even some in his own Democratic Party to key elements of the proposal he laid out a week ago, which must be approved by Congress to become a reality. The president said he would not accept making no changes at all on taxes and infrastructure spending, arguing the United States' position as a pre-eminent global power was under threat from China if it could not make the investments he outlined.

"Do you think China is waiting around to invest in its digital infrastructure, on research and development?" Biden asked. "I promise you. They are not waiting. But they're counting on American democracy to be too slow, too limited and too divided to keep pace." He added: "We can't afford to prove them right."

The president's plan makes investments over eight years in building roads and bridges, retrofitting homes, expanding broadband internet access, caring for the elderly, financing domestic manufacturing and building high-speed rail. Biden has proposed that the plan not add to the country's debt in the long run. The largest share of funding would come from an increase in the corporate tax rate to 28%, from the 21% levy set by then-President Donald Trump's 2017 tax cut.

The administration released more details on Wednesday about the tax components of the plan, which also include higher levies on companies' overseas earnings, a new minimum tax on the profits companies report to investors and funding for more Internal Revenue Service enforcement officials. Those efforts, dubbed the "Made in America Tax Plan," would raise $2.5 trillion over 15 years, the Treasury Department said.

The business lobby and Republicans have been withering in their criticism of the funding side of the proposal. The U.S. Chamber of Commerce last month called raising corporate taxes "dangerously misguided" and a drag on growth.

In a speech at the Eisenhower Executive Office Building near the White House, Biden countered by taking aim at companies paying little to nothing in federal taxes. "I'm not trying to punish anybody, but damn it - maybe it's because I come from a middle-class neighborhood - I'm sick and tired of ordinary people being fleeced," he said.

Individual taxpayers, whose taxes are deducted from their paychecks, make up a big chunk of U.S. federal government funding. Amazon.com Inc Chief Executive Jeff Bezos said on Tuesday that he supports hiking the U.S. corporate tax rate as part of an infrastructure overhaul.

But the carefully worded statement stopped short of endorsing any specific tax or spending proposal made by Biden.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

East African women traders: 'Celebrating the past, planning for the future'

COVID-19 has hit women disproportionately hard across East Africa, especially those working in the informal sector. Lessons must be learnt to prevent this from happening again....

Viral variants and vaccine nationalism pose two-pronged threat to Covid victory

... ...

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

Videos

Latest News

U.S. weighing anti-corruption task force for Central America -envoy

The Biden administration is considering creating a task force of officials from the U.S. Justice and State Departments and other agencies to help local prosecutors fight corruption in Central Americas Northern Triangle countries, a senior U...

Tesla CEO Musk puts $100 mln jolt into quest for carbon removal

Billionaire entrepreneur Elon Musk on Thursday offered inventors 100 million in prize money to develop ways to fight global warming by removing carbon dioxide from the atmosphere or ocean. Right now weve only got one planet, said Musk, CEO ...

Rockets hit near Baghdad international airport, no casualties

At least three rockets landed in the perimeter of Baghdad International Airport late on Thursday, Iraqi security officials said.The officials said the rockets landed near the area of the airport which houses U.S. forces and there were no re...

Mexico reports 3,708 new COVID-19 cases, 498 more deaths

Mexicos health ministry on Thursday reported 3,708 new confirmed cases of COVID-19 in the country and 498 more fatalities, bringing its total to 2,319,519 infections and 214,095 deaths.The government has said the real number of cases is lik...

Give Feedback