WASHINGTON – President Biden’s proposed corporate tax hike as part of a $ 2.3 trillion infrastructure plan has sparked skeptical reaction from some Democrats, who prefer to borrow money to pay for investments or raise other fees, like the gas tax, to do that.
The proposal would increase the corporate tax rate from 21% to 28% and increase taxes on the profits of companies abroad. The White House said tax increases would cover the cost of the $ 2.3 trillion package over 15 years, which will invest in improving roads, bridges and transit systems, along with expanding access to the band. wide range and a myriad of other efforts.
Republicans have largely rejected Biden’s proposed tax increases, but some Democrats are raising their own doubts 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 suggesting potential changes to the plan.
Deputy Peter DeFazio (D., Ore.), Chairman of the Chamber’s Transport and Infrastructure Committee, said he did not think it necessary to pay the full cost of the plan through tax increases. Mr. DeFazio said he would support an increase in the gas and diesel tax to pay for new investments over time, as well as more loans to cover part of the cost.
“When you are borrowing money for current consumption instead of borrowing money for investment, it is a different thing,” he said.