President Joe Biden is pushing a proposed corporate tax hike to finance a $2.3 trillion infrastructure bill — but there may be other ways to fund the massive project.
According to CNBC, Biden could also try to prod the nation’s richest households to contribute more in income taxes; increase the federal gasoline tax; create a so-called mileage tax; or monetize the U.S. electrical grid.
Republicans say the current plan is a front to spend money on a host of liberal policies other than improvements to roads, bridges, airports and public transit — and in part, rolls backs former President Donald Trump’s 2017 tax cuts.
Biden says he’s open to negotiating on the corporate tax rate, and is set to meet with Republican and Democratic lawmakers on Monday to kick off infrastructure negotiations in earnest.
“We’ve got to pay for this,” Biden said last week, adding, there are “many other ways we can do it.”
Ultimately, how Biden finances his plan and the degree to which he relies on a corporate tax hike will depend on how much he wants bipartisan support from a Republican Party calling for him to scale back his ambitions and focus on a package closer to $600 billion, CNBC reported.
The president and the Democratic leadership in Congress could opt to use the reconciliation process, as they did for the COVID-19 relief bill, which would allow them to pass the legislation with a simple majority in the evenly divided Senate.
But that would mean winning over Sen. Joe Manchin, D-W.Va., who opposes raising the corporate rate to 28% — though he could meet Biden in the middle, CNBC reported.
“As the bill exists today, it needs to be changed,” Manchin told Hoppy Kercheval, the host of West Virginia Metro News’ “Talkline” show, CNBC reported.
“I think [the corporate rate] should have never been under 25%, that’s the worldwide average. And that’s what basically every corporation would have told you was fair.”
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