Joe Biden scraps corporate tax hike in exchange for bipartisan support on infrastructure deal
UPDATED 2:36 PM PT – Thursday, June 3, 2021
Joe Biden has made a massive concession on his infrastructure deal in hopes of gaining support from Republicans. An anonymous White House official said Biden has offered to drop his original plan to hike the corporate tax rate to 28 percent and instead said he would set a minimum tax rate of 15 percent.
However, in exchange, Republicans would have to agree to commit to $1 trillion in infrastructure spending. Even so, Biden did express the possibility of a future tax hike as part of a later spending package.
This comes after Sen. Shelley Moore Capito (R-W.Va) met with Biden to negotiate a deal on Wednesday. In a statement released by the White House, it suggested discussions with the West Virginia lawmaker were constructive and frank. Capito, the Senate GOP’s lead negotiator, advocated for the adoption of the Republican’s $928 billion counterproposal instead of Biden’s $1.7 trillion package.
A major disagreement has been on the definition of infrastructure itself, with Democrats wanting to set aside money for social programs that have not been traditionally included in an infrastructure bill. A spokesperson for Capito said the two discussed how they could come together to reach a bipartisan agreement.
Meanwhile, Transportation Secretary Pete Buttigieg has been pressuring Biden not to give Republicans an inch in negotiations, while Biden has continued to criticize members of his own Party for not voting down Party lines.
Despite ongoing partisan hurdles and a $772 billion difference, Capito and Biden are expected to speak again on Friday.