Biden Says ‘No Evidence’ Higher Corporate Tax Will Drive Businesses Off As Key Democrats Demand Change

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On Monday, President Joe Biden defended his proposal to increase the US corporate tax rate, calling it false that doing so would alienate businesses from the country. Biden has proposed corporate tax increases as part of a $ 2.3 trillion infrastructure plan. It would raise the corporate rate from 21% to 28% and raise taxes on companies’ foreign profits.

Read: Biden Launches $ 2.3 Billion Infrastructure Plan: ‘It’s Bold, Yes, And We Can Do It’ Returning to Washington from Camp David on Monday, Biden answered a journalist’s question about concerns that a higher tax would drive away to US corporations at all, ”Biden said. “There is no evidence for that.” Former President Donald Trump and Republicans in Congress cut the corporate rate from 35% to 21%. Republicans have criticized Biden’s tax proposals, and on Monday, West Virginia Sen. Joe Manchin, a key Democrat, said he would not support an increase in the corporate rate to 28%. Manchin told a local news station that he could support an increase in the corporate rate to 25% and that he would be in favor of closing the tax “loopholes” that benefit the rich. White House press secretary Jen Psaki said the administration expects different ideas, like Manchin’s, on how to pay for the infrastructure package. “We are open to hearing ideas and proposals from members and we encourage them to submit them,” he told reporters at a briefing. As MarketWatch reports, international tax changes for multinational corporations are a key part of the Biden administration’s plans to pay for the infrastructure package. On Monday, Treasury Secretary Janet Yellen said she is working with nations around the world to end the “race to the bottom” on corporate tax rates. See: Yellen pushes for a global minimum corporate tax Senate Democrats are also offering proposals to increase the tax burden on the foreign profits of US companies, reports the Wall Street Journal. A new framework from Senators Ron Wyden of Oregon, who leads the finance committee, Sherrod Brown of Ohio and Mark Warner of Virginia is designed to spur other Democrats to offer their ideas, the Journal said. US stocks DJIA, + 1.15% hit new highs on Monday in another round of good economic news from the services sector, adding to the range of indicators showing an improvement in activity, including a stellar employment report from March last Friday.