The chairman of the Council of Economic Advisers, Cecilia Rouse, said on Sunday that the president is proposing corporate tax increases because it is “the right thing to do”.
CBS “Face the Nation” anchor Margaret Brennan pressed Rouse over Biden’s proposal to increase the corporate tax rate from 21% to 28% or potentially more after Rouse said the $ 2 trillion spending plan de Biden is “good for the economy”.
$ 2T BIDEN SPENDING PLAN, CHARGED AS AN INFRASTRUCTURE ACCOUNT, WINS LESS THAN HALF ON THE INFRASTRUCTURE
“It’s 15 years of higher taxes to pay for eight years of spending. Can you really say it’s not a cost?” Brennan asked.
The President of the Council of Economic Advisers, Cecilia Rouse, speaks to reporters at the Brady Press Briefing Room at the White House on March 24, 2021 in Washington, DC. Rouse said on Sunday that raising corporate taxes is “the right thing to do” for companies to “pay their fair share”. (Photo by Chip Somodevilla / Getty Images)
“I would say that the reason the president is proposing these corporate tax increases is because that is the right thing to do,” said Rouse. “He believes that we should be … encouraging these corporations to pay their fair share.”
The Biden government announced a major spending plan last week that said it would be paid with an increase in the corporate tax rate and taxes on wealthy people. The plan would reverse part of former President Donald Trump’s tax cuts in 2017.
Although Biden promoted the proposal as a way of dealing with infrastructure issues, a Fox News analysis of the “American Employment Plan” shows that less than $ 750 billion of spending would actually go to infrastructure.
BIDEN CORPORATE TAX HIKE CAN REDUCE THE ECONOMY, REDUCE WORK IN THE UNITED STATES, STUDIES
Although Rouse says Biden’s proposals are “good for the American economy”, the Tax Foundation says that corporate tax increases can reduce GDP and eliminate 159,000 jobs.
“The economic literature shows that corporate income taxes are one of the most damaging types of taxes for economic growth, since capital investment is sensitive to corporate taxation,” says a group analysis. “The corporate income tax increases the pre-tax return on companies necessary to seek investment opportunities, reducing the set of investments that companies consider valuable to seek. This reduces long-term economic production, reducing wages and living standards. “
President Joe Biden delivers a speech on infrastructure spending at the Carpenters Pittsburgh Training Center, Wednesday, March 31, 2021, in Pittsburgh. (AP Photo / Evan Vucci)
Senate Republicans are vehemently opposed to the spending plan. They say it is very expensive and goes far beyond infrastructure needs, such as replacing old bridges and highways.
He “redefines the infrastructure to include hundreds of billions of dollars in spending on priorities such as health, workforce development and research and development,” said Sen. Rob Portman, R-Ohio.
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Senator Ted Cruz, R-Texas, said the $ 2 trillion plan is “actually just the New Green Deal, masquerading as an infrastructure plan”.
“It contains extreme left-wing priorities, such as attacking American workers’ right to work protections, a big favor for the great labor leaders,” said Senate minority leader Mitch McConnell, R-Ky.