Politics Biden reportedly briefed major bank CEOs before unveiling infrastructure plan, corporate tax hike
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.
- President Joe Biden's infrastructure package includes an increase in the corporate tax rate.
- He briefed several bank CEOs on the package the morning before the announcement, the WP reports.
- Business had a mixed response to it, while it has broken clearly with the GOP on several issues.
President Joe Biden wants to increase taxes on corporations with his- and he let some leading business executives know before he announced it.
Democrats see political winner in tax fight
As President Biden races ahead with a mammoth plan to bolster the nation's infrastructure, Democrats are gambling they'll get a political boost from an accompanying proposal: the tax hikes designed to defray the massive costs.Biden on Wednesday outlined a slate of tax reforms aimed at raising $2.5 trillion - much of it from large corporations - to underwrite the new infrastructure spending. The proposal was quickly roasted by Republicans, who have long portrayed Democrats as the party of higher taxes and are now warning that Biden's plan would hurt small businesses and kill American jobs.
According to, the Biden administration briefed Brian Moynihan, the CEO of Bank of America, and David M. Solomon, the CEO of Goldman Sachs - along with "four other chief executives of the country's biggest banks" - the morning of the infrastructure plan's announcement.
They weren't the only ones briefed, according to the Post; "in a 24-hour period," groups like the Business Roundtable, the Chamber of Commerce, and National Association of Manufacturers also heard from White House officials, with outreach to thousands of small businesses also being planned.
All three of those groups have raised public objections: The Chamber of Commerce hasagainst the corporate tax hikes, as have the and the .
Louisiana Legislature prepares to enter tax-heavy session
"Tax reform" means different things to different people, but a lot of people across the political spectrum seem to think Louisiana needs it. © Provided by Washington Examiner As usual during odd-numbered years, the regular legislative session that starts Monday is focused on taxes and spending, though lawmakers can propose up to five nonfiscal bills each. Gov. John Bel Edwards, who saw his own attempt at a comprehensive tax overhaul rebuffed in 2017, did not include any tax measures in his legislative agenda.
Video: Business Roundtable's infrastructure chair on supporting reform initiatives (CNBC)
According to the Post, Commerce Secretary Gina Raimondo "has spoken to more than 50 leading executives in recent days about the plan."
On the whole, the business reaction to that hike has certainly not been, with CEOs surveyed by the Business Roundtable that the increase could impact hiring and wage raises, but Amazon CEO Jeff Bezos he supports an unspecified increase to the corporate tax rate, while Lyft cofounder and President John Zimmer supports .
But overall, the reaction from the business community has been somewhat tepid, as many businesses have opted to stay silent. The Post partially attributes this to the weakened relationship between the business community and the GOP, which accelerated after the January 6 insurrection on the Capitol.
OVERNIGHT ENERGY: Biden seeks GOP support for infrastructure plan | House GOP's planned environmental bills drop Democratic priorities | Advocates optimistic Biden infrastructure plan is a step toward sustainability
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Many prominent business leaders - including at least one who had previously supported President Donald Trump -against those attacks. More recently, some businesses have stepped up to voice their support for voting rights and access following the passage of a restrictive voting bill in Georgia, as called for boycotts of companies that did not take action.
Republicans have come out against the, which would bring the corporate tax to 28% from 21%. That's still lower than the 35% rate in place prior to the Trump administration's 2017 tax cuts. As Insider's Joseph Zeballos-Roig , the GOP has instead been suggesting that average people shoulder the cost of infrastructure improvements in the form of "pay-fors."
But another reason that the response has been tepid could be a looming compromise: Axios reported that Senate Democrats will push a, an amount that powerful moderate Sen. Joe Manchin has .
Senate Republicans propose $568 billion infrastructure plan to counter Biden .
Republicans proposed eliminating spending on caregivers, combating climate change and manufacturing that go beyond physical infrastructure.Although their plan doesn't specify how to pay for the spending, Republicans suggested new user fees, resisting a corporate tax rate increase pushed by Biden and keeping former President Donald Trump's 2017 tax cuts intact.