- Biden vigorously defended his proposed corporate tax hike, saying he was open to a compromise.
- He said he was ‘sick of the fact that ordinary people are fleeing’, while large businesses get away with little or no income tax.
- Biden quoted a recent report as indicating that 55 major U.S. companies paid no federal income tax last year.
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President Joe Biden on Wednesday gave a strong boost to his massive infrastructure package, arguing that his proposed 28% increase in corporate taxes would level the playing field between large corporations and average Americans.
“I’m not trying to punish anyone, but damn it – maybe because I’m from a middle class neighborhood – I’m tired of ordinary people fleeing,” Biden said in an afternoon speech.
The president also blew up companies that pay little or no federal taxes without naming them. He cited a recent report from the left-wing Institute for Taxation and Economic Policy which found that 55 U.S. multinational corporations paid $ 0 in income taxes last year. The roster included household names such as FedEx, Nike and HP.
“It’s just not fair. It’s not fair to the rest of the U.S. taxpayers. We’re going to try to put an end to it – not to let them flee, 28%,” he said. “If you’re a mom or dad, a cop, a firefighter, a police officer, and so on, you pay it in your income tax.”
While signaling that it is willing to negotiate its proposed 28% tax rate, a key plan to raise revenue for infrastructure, it stresses the need to pay for its massive $ 2 trillion plan.
“I’m wide open, but we have to pay for this. I’m willing to negotiate about it,” he said.
Biden last week unveiled a grand plan of $ 2 trillion, the first of two parts aimed at upgrading the country’s infrastructure. The plan includes new funds to repair deteriorating roads and bridges, remove lead pipes from the water systems and expand broadband networks.
It also included money to support the home care of elderly Americans to modernize the country’s electrical network and gradually phase out fossil fuels to combat climate change.
The grand plan faces an uphill battle through both chambers of Congress, where Democrats have very slim majorities.
Congress Democrats can choose to bypass Republicans by using the strict path of budget reconciliation, a tactic to pass certain bills by a simple majority of 51 votes in the Senate instead of 60. Reconciliation was used to approve the $ 1.9 billion stimulus plan without any IDP votes.
Biden on Wednesday took a turn at the Republicans who claim the plan goes far beyond the traditional understanding of infrastructure, such as roads and bridges.
“200 years ago, trains were also not traditional infrastructure,” he said.