Biden Looks to Raise US Corporate Taxes, with Dozens of Companies Now Paying Nothing
America's Voice Admin
April 5, 2021
U.S. President Joe Biden is looking to raise corporate income tax rates to help pay for his proposed $2.3 trillion infrastructure spending plan, but dozens of the country’s biggest and best-known companies are currently legally avoiding paying any federal taxes.
Biden says he wants to raise the corporate income tax rate from 21% to 28%. The rate was cut from 35% in 2017 under Biden’s predecessor, Donald Trump.
On Monday, U.S. Treasury Secretary Janet Yellen called for a global minimum tax. In a speech before the Chicago Council on Global Affairs, she said the tax would apply to multinational corporations no matter where they locate their headquarters, to prevent countries from trying to outdo one another by lowering tax rates in order to attract business.
“Competitiveness is about more than how U.S.-headquartered companies fare against other companies in global merger and acquisition bids,” Yellen said. “It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government.”
Republican lawmakers in Congress are already criticizing the new Democratic president’s infrastructure plan as too expensive and straying far afield from traditional road and bridge repair and construction. The plan aims to fund other programs favored by liberal Democrats, such as manufacturing investment, child-care services and raising wages for essential home-care workers.
For the most part, Republicans also are adamantly opposed to raising taxes, with Biden also proposing to increase taxes on the wealthiest individual taxpayers, those making more than $400,000 a year.
Senate Republican leader Mitch McConnell said there is no chance Republicans would back any tax increases to pay for Biden’s infrastructure plan.