2021-04-07 21:54:11 –
President Joe Biden drew a red line on his $ 2.3 trillion infrastructure plan on Wednesday, saying he was prepared to compromise on how to pay for packages, but neglect was unacceptable.
In his afternoon speech, the president said the United States had failed to build, invest and research for the future, adding that failure to do so would give up “leading the world.”
“Compromises are inevitable,” Biden said. “We can accept good ideas by negotiating in good faith, but this is what makes us not open: we are not open to doing anything. Simply , Doing nothing is not an option. “
Biden disputed the idea that low tax rates help growth rather than invest in caregivers, roads, bridges, clean water, broadband, school buildings, power grids, electric cars, and veteran hospitals.
The president was enthusiastic about Republican lawmakers and corporate groups by proposing that the corporate tax hike should fund infrastructure packages that go far beyond the traditional focus on roads and bridges.
“It wasn’t the infrastructure bill that the president proposed this week,” Senator Roger Wicker of R-Miss told NBC’s “Meet the Press.” “For one thing, it’s a big tax increase, and it’s a tax increase for SMEs, job creators in the United States.”
Last week, Biden proposed funding a $ 2.3 trillion infrastructure program by raising the corporate tax rate to 28% and raising the global minimum tax rate to 21%. But he said Wednesday he was willing to accept a tax rate of less than 28% unless the project was funded and the tax on people under $ 400,000 was increased.
“I’m happy to hear that,” Biden said. “But we have to pay for this. We have to pay for this. There are many other ways we can do it. But I’m going to negotiate. I have suggested the best and most rational way to pay for it, the fairest way in my view, but there are many other ways. it is open.”
He emphasized that he was ready to compromise on the $ 1.9 trillion coronavirus rescue program, but Republicans never exceeded the $ 600 billion counter-proposal.
“If they suggested a plan to do most of it, and it was $ 1.3 billion or $ 4 … if I could get everything there, I’m ready to compromise. It would have been, “Biden said. “But they didn’t. They didn’t move an inch. It’s not an inch.”
The president added that America’s position in the world is responsible for taking positive action on modern infrastructure that is useful in the computerized era. Otherwise, the county would lose to China for his belief that it was a fundamental test of democracy. Republican lawmakers argue that higher taxes will reduce the country’s competitiveness globally.
“Do you think China is waiting for investment in this digital infrastructure and R & D? I promise you. They are not waiting. But they rely on American democracy. Late Too many, too many restrictions, too split to keep pace. “
His administration on Wednesday was pressing for a tax increase proceeding. Treasury Secretary Janet Yellen said it was “self-defeating” to believe that then President Donald Trump would reduce the corporate tax rate from 35% in 2017 to 21%, making the economy more competitive and unleashing growth. Stated. Yellen said the competition for tax rates came at the expense of investing in workers.
“Tax reform is not a zero-sum game,” she told reporters by phone. “Win-Win is a worn-out phrase, but now we have a win-win in front of us.”
Yellen said the tax hike would generate about $ 2.5 trillion in revenue over 15 years, sufficient to cover the proposed eight-year infrastructure investment.
The $ 200 billion gap between the tax increase and the administration’s spending suggests that there is room for critics who prefer a 25% tax rate, such as West Virginia Senator Joe Manchin, a Democratic vote. I will.
Manchin also came out Wednesday in opposition to a budget adjustment process that would allow Democrats to pass the Senate with a majority of 51 votes instead of the 60 votes needed to overcome Republican filibuster.
“Senators must avoid the temptation to abandon Republican colleagues on important national issues,” Manchin wrote in a Washington Post editorial. “But Republicans are responsible for stopping saying no and participating in finding a real compromise with Democrats.”
Commerce Secretary Gina Raimondo said companies and lawmakers should sit down for negotiations, and that there may be room to negotiate rates and schedules.
“There is room for compromise,” Lymond said at a White House briefing. “What we can’t do, and what I’m begging for not to do in the business world, is,” We don’t like 28. We’re gone. We’re not talking. “
The key to the Biden administration’s marketing is to bring corporate tax revenue closer to historic levels, rather than raising it to new highs that could undermine the global competitiveness of US companies.
Trump’s 2017 tax cut halved corporate tax revenue to 1% of GDP. This is an indicator of the total income of the economy. Previously, revenue was equivalent to 2% of GDP. The Treasury said in a summary of the plan that the high numbers were still below the average of 3% of the Organization for Economic Co-operation and Development’s peers.
Still, some say the administration’s claims are misleading.
“The administration needs to use statistics that directly measure the burden on the corporate sector,” said Kyle Pomerlot, a fellow at the Conservative American Enterprise Institute. “In fact, many indicators of effective tax rates show that the burden on the United States is pretty close to the middle of the road. Biden’s plans will certainly be pushed to the high end among our major trading partners. . “
Business groups such as the US Chamber of Commerce and the Business Roundtable argue that tax increases will hurt US companies operating around the world and the wider economy.
The Penwarton budget model released a report Wednesday, stating that the sum of spending and taxes would increase government debt by 2031 and decrease it by 2050. However, according to the plan, GDP will fall by 0.8% in 2050.
Biden open to compromise on infrastructure, but not inaction – Twin Cities Source link Biden open to compromise on infrastructure, but not inaction – Twin Cities