Congress

White House, Businesses Privately Agree on Taxes

SK Ashby
Written by SK Ashby

Centrist Senator Joe Manchin participated in an interview with a local radio station this week in which he said he would support raising corporates taxes to pay for an infrastructure bill, but not by as much as President Biden originally proposed.

Manchin said he would support raising taxes to 25 rather than 28 percent, but the White House may have already secured support for doing that from someone just as influential as Machin: the corporations themselves.

Sources who spoke to Reuters say business groups and the White House have tentatively settled on a rate of 25 percent during private discussions.

Reuters interviewed more than a dozen corporate and White House officials engaged in the infrastructure push. Most expect the White House and business groups to compromise on a 25% corporate tax rate - a level neither side would have chosen, but both can live with.

“We don’t like it, but we expect to be at 25 percent,” a lobbyist at a top U.S. energy firm said, requesting anonymity. “If so, we are going to consider that a win.” [...]

The White House knew that proposing an increase to 28% would face opposition, including from some Democrats. It is prepared to discuss alternatives - including setting the rate to 25%, three administration officials familiar with the discussions told Reuters.

If corporations themselves are not going to oppose a rate of 25 percent, that doesn't leave much reason for Manchin to oppose it.

It doesn't leave much reason for the Republican party to oppose it, either, but they don't do policy. They don't have policy priorities or goals or ambitions aside from the suppression and oppression of minorities.

Corporations know they will benefit from Biden's infrastructure proposal and they'd probably like to see it done even if it costs them a little bit. There are entire industries -- such as the electric vehicle industry -- betting on a future that is literally fueled by the additional government spending.