Published: Tue, April 06, 2021
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White House Fails to Address Joe Manchin’s Concerns About Corporate Tax Hikes

White House Fails to Address Joe Manchin’s Concerns About Corporate Tax Hikes

Sen. Joe Manchin, an influential centrist Democrat from West Virginia, warned earlier Monday that the Biden package can't pass in its current form because he and a handful of other Senate Democrats believe the corporate tax hikes proposed in the bill - created to offset its costs - are too steep.

Recent polling by The Associated Press-NORC Public Research Center found Americans have responded favourably to the President's approach, with 73% approving of his handling of the pandemic. Sens. Sherrod Brown, D-Ohio, and Mark Warner, D-Va., both signed on as co-authors.

Blunt, a veteran member of the Senate leadership team, nonetheless displayed a more conciliatory tone than the Republican leader in the Senate, Mitch McConnell, Who promised a few days ago to fight Biden's plan "at every step".

But the proposal announced this week faces major obstacles in Congress amid criticism from the Republican Party and business lobbies that They oppose the rise in corporate taxes with which the plan is meant to finance.

"The president's plan basically says, look, if we're going to be serious about economic opportunity in all parts of the country, if we're going to be serious about equity and making sure the persistently poor areas of the country are brought up to speed, we're going to have to invest in broadband and we're going to have to invest in the broadband it gives people the same advantage regardless of where they live". The plan proposes raising the corporate tax rate to 28% from the current 21%, effectively repealing the changes to the corporate tax made under the Trump administration's sweeping tax cuts in 2017.

"Competitiveness is about more than how US -headquartered companies fare against other companies in global merger and acquisition bids", Yellen said.

Biden pushed back at Republican criticism that the president's $2.3 trillion American Jobs Plan is filled with items that are unrelated to infrastructure. "51 or 52 corporations of the Fortune 500 haven't paid a single penny in taxes for three years. Come on, man. Let's get real".

The President noted that infrastructure has historically been a bipartisan undertaking, but the issue of how to pay for the proposal is where the negotiations on Capitol Hill are likely to get sticky.

Roy BluntPresident of the Senate Republican Policy Committee, He called on Democrats to focus on the traditional pillars of infrastructure, "roads, bridges, ports and airports".

The Senate drafters do not specify the exact new tax rates associated with their plan or how much additional tax revenue it would raise, choosing instead to wait and set rates to match Democrats' spending ambitions later this year.

Brown said in a statement on the plan that "corporations should pay their fair share, just like OH families do, and they shouldn't get a tax break for shipping workers' jobs overseas".

"There will be different ideas for tax proposals that will all need to be weighed by a range of questions", Psaki said.

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