Politics Corporate America wants to avoid higher taxes and social issues. That's not likely to happen.
AOC leads left's claim $2 trillion infrastructure bill is NOT enough
WASHINGTON (AP) - President Joe Biden wants $2 trillion to reengineer America´s infrastructure and expects the nation´s corporations to pay for it.The'This is not nearly enough,' Ocasio-Cortez lamented on Twitter.
- For years, America's biggest companies have steered clear of politics, except for hefty donations.
- Now, there's more of an expectation for them to speak out, just as they face a big tax increase.
- Companies probably don't want a tax increase, and seem mixed on responding to it.
Corporate America is going through growing pains on political activism - but it's still trying to fight off higher taxes. In the Biden era, the two may go hand in hand.
Long apolitical, the dynamic that emerged during the Trump years ofon hot-button social issues has, if anything, , as reflected in the recent corporate outcry against Georgia's recent legislation to restrict voting rights.
Republicans Keep Worshipping at This Zealot’s No-Tax Altar
Grover Norquist, the high priest of Republican tax-cutting, may not be as prominent as he was in the 1990s, but he is the reason that Joe Biden can’t afford to lose a single senator or more than a handful of House members without losing his entire economic agenda. Norquist, who once said his goal is to starve the government down to the size “where we can drown it in the bathtub,” has been remarkably successful at shaping a political environment that makes it hard to even talk about, let alone succeed in, raising taxes. He’s in a tight corner now, but it would be dangerous to write him off as old news. When President George H.W.
At nearly the same time, corporate America has been far less aligned with the progressive agenda of funding a large infrastructure and jobs plan with a boost to the corporate tax rate. In fact, only fours ago, in 2017, the business community cheered its biggest win on taxes in decades under former President Donald Trump, when the corporate rate was slashed from 35% all the way down to 21%.
As part of his $2.3 trillion infrastructure package. Biden wants to jack the corporate tax rate up to 28%. It represents a hit to corporate profits and many influential business groups are staunchly opposed to it, along with congressional Republicans.
The Chamber of Commerce's chief policy officer, Neil Bradley,"agrees with the Biden administration that there is a great need to invest in American infrastructure and that 'inaction is simply not an option.'" However, he added, "that doesn't mean we should proceed with tax hikes that will hurt American businesses and cost American jobs."
Democrats offer competing tax ideas on Biden infrastructure
Congressional Democrats are debating how they should raise taxes to finance President Biden's infrastructure plan, with minor disagreements emerging in the early stages.The White House has proposed raising the corporate tax rate from 21 percent to 28 percent and increasing taxes on U.S. companies' foreign earnings. But some Democratic lawmakers are pushing back on aspects of the tax proposals, while others have suggested ideas that diverge from the administration's plans. Reaching consensus on taxes will be among the top challenges for Democrats as they work to enact an infrastructure and jobs package in the coming months.
And Josh Bolten, chief executive officer of Business Roundtable, toldon Thursday that Biden should like roads and bridges - and he was "strongly against" the corporate tax hike.
Some individual business leaders are coming out in favor of Biden's tax increase. Amazon CEO Jeff Bezosthat the company is supportive of a rise in the corporate tax rate, although he didn't specify what rate he supports. Lyft president and cofounder John Zimmer has thrown his support .
Many other companies are staying tight-lipped about how, exactly, they feel - while perhaps, as reported by Politico.
Corporate taxes seen as a 'less charged issue'
The corporate response on taxes is a sharp break from the. An open letter from 72 Black executives last week was quickly followed by from over 170 business leaders urging state lawmakers against "imposing barriers that result in longer lines at the polls or that reduce access to secure ballot dropboxes."
What Matters: Taxes will have to go up for someone
The US is entering a weird place where even some big money execs -- the kinds of people who usually build businesses by doing everything they can to avoid paying federal taxes -- agree the government needs to raise funds to keep things rolling. © shutterstock Now, like a family with a calculator at the kitchen table going over its bills, American policymakers and business leaders are slowly coming around to the most obvious mathematical truth: Companies will need to shell out funds if they want the government to invest in President Joe Biden's goal of bringing the nation's infrastructure up to scratch.
Companies in the latest letter included Microsoft, HP and Dow.
Vanessa Burbano, an assistant professor of management at Columbia Business School, said the phenomenon of companies taking political stances is relatively new. She said what companies do choose to speak out publicly about varies - although a handful of companies releasing their own statements does put pressure on others.
Doug Schuler, a professor of business and public policy at Rice University, argued the letter from Black CEOs opened the door for other prominent business figures to take a similar step.
He told Insider that his sense of what CEOS were trying to do was "to make statements to their customers, to their workforce, and perhaps investors they are sensitive to these social issues - it's an issue they should be on the right side of."
Agreeing to pay more in taxes to fund Biden's plan to "build back better," though? Many CEOs don't want to be on the right side of that.
The corporate tax rate is "a less charged issue than some of the others that we've seen companies take stances on in the past, like including what happened in Georgia, including things related to immigration or LGBTQ rights or things like this that are sort of influence the individual stakeholder much more directly," Burbano said.
Opinion: Jeff Bezos is right about raising taxes
Jeff Bezos has garnered headlines again for his comments on Amazon's taxes. This time it comes with a twist. Bezos is not defending Amazon against charges leveled by the likes of Sen. Elizabeth Warren over Amazon's less-than-zero federal taxes in 2018. (In 2019, the company paid slightly more than 1% of its profits in taxes.) © Mandel Ngan/AFP/Getty Images Blue Origin founder Jeff Bezos speaks after receiving the 2019 International Astronautical Federation (IAF) Excellence in Industry Award during the the 70th International Astronautical Congress at the Walter E. Washington Convention Center in Washington, DC on October 22, 2019.
Politicians are also divided
Sen. Joe Manchin, a moderate Democrat who's a key vote in the Senate, has expressed his concerns over raising the rate to 28%. He's more in- and his support will prove pivotal to the eventual passage of any plan as Democrats grapple with slim majorities in Congress.
"Claims that American businesses cannot compete with a corporate tax rate above 28% ignore the clear and indisputable evidence to the contrary," Rep. Don Beyer (D-VA), Chairman of the US Congress Joint Economic Committee and member of the House Ways and Means Committee, said in a statement to Insider.
He added: "It's good to see support for a reasonable increase in the rate from business leaders as well as former top Republican economic adviser Gary Cohn," referring toby Trump's former National Economic Council director that, actually, 28% would have been a decent place to arrive at in the 2017 tax law.
Republicans havetheir opposition to tax hikes clear. Top Republicans also blasted companies for wading into the country's hot-button issues like voting rights.
"From election law to environmentalism to radical social agendas to the Second Amendment, parts of the private sector keep dabbling in behaving like a woke parallel government," Senate Minority Leader Mitch McConnell. "Corporations will invite serious consequences if they become a vehicle for far-left mobs to hijack our country from outside the constitutional order."
Experts like Schuler said large companies won't weigh into every social issue unless the pressure to do so becomes impossible to cast aside. He pointed out that large businesses hadn't weighed in on another set ofin Texas.
"To some extent, I think businesspeople want these issues to go away," he said. "They hate it when the spotlight is on them."
Why some of the most liberal Democrats in Congress want to bring back a tax break for the rich .
Democrats want to raise taxes. So why are they debating cutting them for some well-off taxpayers?In their 2017 tax bill, Republicans partially closed a tax loophole that mainly affected higher-income people in high-tax areas — i.e., relatively well-off people in blue states. They capped the state and local tax deduction (SALT) people can take when calculating their federal income tax at $10,000. People can still deduct state and local taxes from their federal tax bill, but only up to that point.