WASHINGTON – President Biden’s proposed corporate tax increases as part of a $ 2.3 billion infrastructure plan have drawn a skeptical response from some Democrats, who would rather borrow money to pay for investments or raise other levies, such as the petrol tax , to do it.
The proposal raises the corporate tax rate to 28% from 21% and increases the tax on companies’ foreign earnings. The White House said the tax increases over 15 years would cover the cost of the $ 2.3 billion package, which would provide for the improvement of roads, bridges and transit systems, along with the expansion of broadband access and numerous other efforts.
Republicans called Mr. Biden’s proposed tax increases are widely rejected, but some Democrats are asking their own questions about the plan. With very narrow majorities in the House and Senate, Democrats will need almost unanimous support in their party to advance the package without Republican votes, and many lawmakers are pushing for potential changes to the plan.
Rep. Peter DeFazio (D., Ore.), The chairman of the Home Transport and Infrastructure Committee, said he did not think it was necessary to pay the full cost of the plan through tax increases. Mr. DeFazio said it would support an increase in gas and diesel taxes to pay for the new investments over time, as well as more loans to cover part of the cost.
“If you borrow money for current consumption versus borrowing money for investment, it’s a different thing,” he said.