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

Andrew Cummings
April 6, 2021

Republicans opened the door this Sunday to support a scaled-down version of Joe Biden's $ 2 trillion infrastructure plan, which in case of focusing on physical works could report an "easy bipartisan victory" for the president of the United States.

Speaking to reporters in Washington after spending Easter weekend at the Camp David presidential retreat in Maryland, Biden again took aim at the 50 or 51 corporations on the Fortune 500 list that paid no taxes at all for three years, saying it was time for them to pay their share.

Part of the funding formula was a hike to a 28% corporate tax rate from 21% but that's going nowhere.

Biden's predecessor, former President Donald Trump, and Republican lawmakers cut the corporate rate from 35% to 21% in 2017.

The White House conceded on Monday that Senate Democrats such as Sen. "This confirms the Leader's interpretation of the Budget Act and allows Democrats additional tools to improve the lives of Americans if Republican obstruction continues".

"The net effect is 'that $1 increase in federal investment reduces investment by states, localities, and private entities by one-third of a dollar.' In other words, when the federal government invests $1, nonfederal sources reduce their investment by $0.33, which leaves a net investment of $0.67, not the full $1", the Tax Foundation announcement asserted.

"There will be different ideas for tax proposals that will all need to be weighed by a range of questions", Psaki said.

Critics have said the infrastructure proposal will burden American families, especially while they are recovering from coronavirus lockdown orders. "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".

Roy Blunt, the chairman of the Senate Republican Policy Committee, called on Democrats to focus on the traditional pillars of infrastructure, "roads, bridges, ports and airports."- and not Biden's more expansive spending projects to create jobs, fight climate change, and tackle an ever-stronger China.

"If we'd go back and look at roads and bridges and ports and airports, and maybe even underground water systems and broadband, you'd still be talking about less than 30% of this entire package", Blunt said on "Fox News Sunday".

"What the president proposed this week is not an infrastructure bill".

Blunt, a seasoned member of the Senate leadership team, nevertheless displayed a more conciliatory tone than that of the Republican leader in the Upper House, Mitch McConnell, who days before had promised to fight Biden's plan "at every step".

Other reports by iNewsToday