Sens. Mitt Romney (R-Utah) and John Hoeven (RN.D.) told President Biden on Monday that they are against raising the corporate tax rate to pay for his proposed $ 2.25 trillion infrastructure package, according to people familiar with the matter.
Why it mattersOpposition from Romney and Hoeven, the only two Republican senators in Monday’s two-part Oval Office meeting, suggests Biden will have a hard time finding any Republican support to pay for his road, bridge and health care proposals through corporate tariffs increase.
- The White House is still looking for evidence that there are Republicans willing to comply with some of the president’s proposals, including Biden’s plan to increase the corporate rate from 21% to 28%.
- If government officials conclude that Republican senators are only interested in drawing red lines, they may be more inclined to take a purely partisan path and seek 50 Democratic votes in the Senate to pass a bill through the budget reconciliation process.
- The president himself said to reporters at the start of the meeting, “I am willing to compromise, willing to see what we can do and what we can get together.”
What they say: While both Romney and Hoeven are in favor of an infrastructure package, they wanted a more targeted payment mechanism – gas taxes and user charges – to help fund individual projects.
- “There is widespread support for infrastructure, and I believe a bipartisan law is possible, but we need to find agreement to implement these updates in a targeted manner without raising taxes,” Hoeven said in a statement.
- “I know my Democratic friends are more likely to look for the general taxpayer income fund to pay the bill, but my tendency is more towards the people who use a facility to be the ones who pay for it,” she said. Romney. reporters on Capitol Hill.
Behind the scenes: Biden started the meeting by giving the floor to Senator Angus King of Maine, an independent who consults with the Democrats and was once a public television host.
- King made sure that everyone in the room had the opportunity to air the views and explain their position.
- Romney acknowledged this and praised the president. “He was in listening mode, and, and was gracious to ask for our respective views,” he said.
It comes down to: Negotiations between Senate Republicans and the White House have only just begun, but their opening positions are miles apart.
- The sheer distance gives more leeway for partisan Democrats to argue against Biden that he should pursue a deal through reconciliation and not be bothered to bring Republicans along.