Politics Top US CEOs Open to Corporate Tax Rate of 28%, Biden Says Trump Cuts Failed
Biden to propose $2 trillion infrastructure, jobs plan funded by corporate tax hike
The White House is comparing President Joe Biden's infrastructure proposal to the construction of interstate highways and the Space Race.The White House is billing the proposal, dubbed the American Jobs Plan, as a domestic investment not seen in the U.S. since the construction of the interstate highways in the 1950s and the Space Race a decade later.
Several top U.S. CEOs say they fully support President's proposal to raise the corporate tax rate to help pay for his estimated $2 trillion infrastructure plan, a move White House allies say is intended to reverse the GOP's 2017 tax breaks that didn't "pay for themselves" as promised.
Republicans have joined forces with Washington business lobbyists to quash Biden's proposal to raise the corporate tax rate from 21 percent to 28 percent. The plan would generate about $850 billion toward his infrastructure package and seeks to find a halfway point after former Presidentsigned the GOP-led Tax Cuts and Jobs Act, which reduced the corporate tax rate from 35 percent to 21 percent. CEO , one of 91 Fortune 500 companies Biden said didn't pay "a single solitary penny" in federal taxes last year, announced that he supports Biden's 28 percent benchmark. Lyft President and co-founder John Zimmer told on Wednesday he also supports the corporate tax hike.
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More than a dozen corporate leaders and White House officials who spoke to Reuters this week said they expect Biden to compromise at a 25 percent corporate tax rate. "Debate is welcome. Compromise is inevitable. Changes are certain," Biden said during a speech at the White House on Wednesday.
Although that move would reduce revenue to under $500 billion, moderateincluding West Virginia Senator have said they could get behind that number and likely ensure the infrastructure bill passes.
"We don't like it, but we expect to be at 25 percent," a lobbyist at a top U.S. energy firm told Reuters in a report published Thursday. "If so, we are going to consider that a win."
White House aides have joined Biden in blasting the 2017 GOP tax cuts for corporations, saying they never "" as Trump Treasury Secretary insisted for years.
White House Sees GOP’s Corporate Tax-Cut Defense as a Big Loser
The White House views Republican attacks on President Joe Biden’s proposal to use corporate tax hikes to pay for a vast infrastructure program as a losing argument in the battle for public opinion, aides and allies of the administration say. The GOP -- which successfully painted the Obama-Biden administration’s initial spending programs as economically ineffective and wasteful in the run-up to the 2010 congressional elections -- has joined with the business lobby in the past week to assail Biden’s proposed tax increases.
Trump's corporate tax break did revamp international codes in an attempt to lure firms back home to the U.S., but only a small number of U.S. companies actually put that extra cash toward worker wages or investment. Instead, dozens of top U.S. companies simply rewarded shareholders and gave bonus payouts to top executives. A Treasury Dept. and Office of Management and Budgetreleased in 2019 found that Trump's tax cuts caused the U.S. deficit to skyrocket 26 percent in just one year. In addition to Trump's massive increases in military spending, lost revenue is the primary cause, stemming from the GOP's tax breaks for the wealthiest corporations and individuals.
"The tax cuts that were passed in 2017 provide a really important case study," Heather Boushey, a member of the White House Council of Economic Advisers, said in an interview. "Looking back at the Tax Cuts and Jobs Act, which did not catalyze that private-sector investment, that's what we're trying to reverse."
Corporate America wants to avoid higher taxes and social issues. That's not likely to happen.
On a range of political issues, businesses have felt compelled to speak out. But many are silent when it comes to tax hikes, if not hostile.Long apolitical, the dynamic that emerged during the Trump years of big business weighing in on hot-button social issues has, if anything, accelerated in 2021, as reflected in the recent corporate outcry against Georgia's recent legislation to restrict voting rights.
Biden's corporate tax plans foresee an increase of the US corporate tax rate from 21% to 28%. But this would not even bring it back to levels under Obama. Graph by @JustinWolfers
More significant: plans for a 21% global minimum tax rate, which would hit tax havens hard. pic.twitter.com/tKEOzgVbGf— Philipp Heimberger (@heimbergecon) April 3, 2021
Biden campaigned on not raising taxes on anyone making less than $400,000, which would severely limit Democrats' ability to fund the infrastructure plan should the GOP and lobbyists convinceto squash a corporate tax hike. Biden criticized 55 of the largest U.S. companies this week for using "various loopholes where they pay not a single solitary penny in federal income tax," in contrast to middle-class families who pay tax rates of more than 20 percent.
"It's just not fair. It's not fair to the rest of the American taxpayers," the president said, citing a study by the Institute on Taxation and Economic Policy.
White House aides said they aren't concerned with' incessant attacks on Biden's plan to raise the corporate tax rate in order to pay for his $2 trillion infrastructure package. They believe they have enough corporate support as well as that of Americans themselves.
Biden releases full tax plan to raise $2.5TRILLION in 15 years
President Joe Biden will tackle Republican criticism of his infrastructure plan as his administration released his plan to overhaul the corporate tax code, whin would raise $2.5 trillion over15 years.His speech comes as his Treasury Department unveiled its plan to overhaul the corporate tax code, which, if enacted, would raise $2.5 trillion in revenue over 15 years to pay for the infrastructure package.
"I think it's important to make investments again in the country and the economy. And as the economy grows, so too does jobs and so too does people's needs to get around," Lyft co-founder Zimmer toldon Friday.
But Chamber of Commerce and Business Roundtable groups have overwhelmingly rejected the corporate tax rate payment plan as ludicrous, having benefitted tremendously from the GOP's 2017 move that reduced the corporate tax rate.
Federal government tax receipts on corporate income have also steadily fallen since the mid-1950s, with collections dropping from about 4 percent of the GDP compared to less than 1 percent today, recent U.S. Bureau of Economic Analysis data shows.
Newsweek reached out to several business lobby groups in Washington as well as the White House on Thursday for additional remarks.
Could Joe Biden's tax plan hit Ireland’s economy? .
US investment in Ireland could dry up if President Biden leads a major change to global tax rules. Irish tax advantage under threatIn among those tech company HQs in Dublin's docklands, you will also find the offices of the lawyers and accountants who help US firms use Ireland's tax system to reduce their global tax bills.For the last 20 years Ireland has had a simple message: invest here and you will pay just 12.5% tax on your Irish profits.That compares favourably to headline corporation tax rates of 19% in the UK, 30% in Germany and 26.5% in Canada.It is an article of faith in Irish politics that the 12.