Biden says no evidence higher corporate taxes will drive companies overseas

Biden says no evidence higher corporate taxes will drive companies overseas

Sen. Joe Manchin, an influential centrist Democrat from West Virginia, warned earlier Monday that the Biden package can't pass in its current form because he and a handful of other Senate Democrats believe the corporate tax hikes proposed in the bill - created to offset its costs - are too steep.

"For decades, our tax code has rewarded corporations that shut down production in the US and move American jobs overseas, and the 2017 Republican tax law only made it worse, with its 50 percent off coupon for corporations that move jobs to Mexico or China", said Senator Sherrod Brown, of Ohio.

Roy Blunt, the chairman of the Senate Republican Policy Committee, implored Democrats to focus on the traditional pillars of infrastructure - "roads, bridges, ports and airports" - and not the more expansive spending Biden envisions to create jobs, fight climate change and stand up to a rising China. That includes utilities, regional banks, many retailers and other companies that sell goods and services primarily in the U.S. The plan proposes raising the corporate tax rate to 28% from the current 21%, effectively repealing the changes to the corporate tax made under the Trump administration's sweeping tax cuts in 2017.

Biden pushed back at Republican criticism that the president's $2.3 trillion American Jobs Plan is filled with items that are unrelated to infrastructure.

The Democratic president once 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.

Former President Donald Trump slashed the corporate tax rate to 21% from 35% - a global high - during his time in office, arguing that the rate disadvantaged the US on the global stage and led many American business to relocate offshore. "Come on, man. Let's get real".

The reconciliation process was set up as part of the 1974 Congressional Budget Act to make it faster and easier to pass legislation related to spending, taxes and debt, because debate on the bills is limited to 20 hours and can be passed on a simple majority vote.

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

Biden promised a presidency much different from his predecessor.

"In other words, right now, what this new reconciliation package is about is dealing with long-term structural problems", Sanders said.

The U.S. Chamber of Commerce, the largest U.S. business group, last month called Biden's proposed hike in corporate taxes "dangerously misguided" and warned it would "slow the economic recovery and make the U.S. less competitive globally".

But several conservatives in the Senate Democratic caucus, with Sen.

Over the weekend, he said he will increase taxes on families making $200,000 a year.

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

"I think the Republicans' voters are going to have a lot to say about whether we get a lot of this done", Mr. Biden said.

Jordan in security sweep, king's half-brother says under 'house arrest'
King Abdullah dismissed Prince Hamza as heir to the throne in 2004 in a move that consolidated his power. He said some 14-16 people are under arrest, in addition to two senior officials close to Prince Hamzah.

Related Articles