WASHINGTON – President Biden’s proposed corporate tax increase as part of a $ 2.3 trillion infrastructure plan has met with skepticism from some Democrats, who instead prefer borrowing money to pay for investments or raising others levies, such as the gasoline tax, to do this.
The proposal would increase the corporate tax rate from 21% to 28% and increase taxes on companies’ foreign income. The White House said the tax increases in 15 years would cover the cost of the $ 2.3 trillion package, which will put money into improving roads, bridges and transit systems, along with expanding broadband access and countless other efforts.
Republicans have widely rejected Mr. Biden’s proposed tax increases, but some Democrats are asking their own questions about the plan. With very small majorities in the House and Senate, Democrats will need near-unanimous support in their party to move the package forward without a Republican vote, and many lawmakers are pushing for possible changes to the plan.
Rep. Peter DeFazio (D., Ore.), The chairman of the House Transportation and Infrastructure Committee, said he didn’t think paying the full cost of the plan through tax increases was necessary. Mr. DeFazio said he would support an increase in gas and diesel taxes to pay for the new investments over time, as well as more loans to cover some of the costs.
“If you borrow money for current consumption versus borrowing money for investment, that’s another thing,” he said.