Senate Democrats are reportedly going to ditch President Joe Biden’s plans to hike the corporate tax rate to 28 percent, instead hiking it only to 25 percent, a setback for the Democrat president’s efforts to pay for a multi-trillion-dollar so-called “infrastructure” plan.
According to Axios, Sens. Mark Warner (D-VA), Kyrsten Sinema (D-AZ), and Jon Tester (D-MT) are not comfortable raising the corporate tax rate to Biden’s proposed 28 percent, which would only raise $600 billion over 15 years and leave a deficiency in Biden’s overall in transportation proposal. Sen. Joe Manchin (D-WV) has also publicly advocated for the corporate tax rate hike to only go to 25 percent.
A 25 percent corporate tax rate is what Communist China charges American corporations. The rate would also be closer to the 23.5 percent average for countries in the Organisation for Economic Co-operation and Development.
Several Democrat and Republican senators and representatives plan to meet with Biden Monday to work through various aspects of his proposal. Perhaps one of those items includes the eldercare component. Business lobbyists are pushing the administration to cut the $400 billion eldercare feature to balance the three percent decrease from Biden’s proposed hike, the Anchorage Daily News reported.
“The home-care provisions have been heavily attacked and are just vulnerable right now,” a White House adviser stated, the paper said.
Meanwhile, Republicans began negotiating on Biden’s $2.25 trillion infrastructure proposal Wednesday with an opening bid of $800 billion but have left the Democrats to negotiate corporate tax increases among themselves.
Sen. Shelley Moore Capito (R-WV) said what she would like is to “get back to what I consider the regular definition of infrastructure in terms of job creation.”
“So that’s roads, bridges, ports, airports, including broadband into that, water infrastructure, not home health aides and school building and all of these kinds of things,” she asserted.
Sen. Deb Fischer (R-NE), who is the ranking member of the Senate Commerce Transportation subcommittee, attacked the proposal via procedure. “If you want road users to pay for it, have a bill that only deals with roads. If you want waterways to be part of the bill, then you have a bill that only deals with that so you can find appropriate pay-fors if you want a user fee,” she said. “I’ve always been a strong proponent of going segment by segment.”
Sen. Roger Wicker (R-MS) has also said he is willing to negotiate with Democrats but asked, “Where does the spending end? This is a massive social welfare spending program combined with a massive tax increase on small business job creators.”
Senate Minority Leader Mitch McConnell stated on the Senate floor that Biden’s infrastructure proposal, including tax hikes, is an “Orwellian campaign” that seeks to relabel many far-left policies as “infrastructure.”
Editor’s Note: This article has been updated to remove Sen. Tim Kaine (D-VA) from the list of senators as reported by Axios, as the publication has retracted that portion of its story. “Kaine supports raising the corporate tax rate to 28% and has never suggested otherwise,” a spokesperson told Axios.