Biden Indicates Abandoning Corporate Tax Hike... Using Infrastructure Investment Agreement as a 'Primer'

Possibility of Abandoning Plan to Raise Corporate Tax Rate from 21% to 28% Communicated to Republicans
Cannot Rule Out Forced Implementation if Negotiations Fail
Hope to Secure Investment Funds through 15% Minimum Tax Rate and Wealth Tax Increase

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] U.S. President Joe Biden has withdrawn his plan to raise the corporate tax rate in order to reach a large-scale infrastructure investment agreement, the Washington Post (WP) reported on the 3rd (local time).

WP, citing sources, reported that President Biden is prepared to withdraw the corporate tax rate increase if the Republican side agrees to infrastructure investment spending.

It is known that President Biden conveyed this position during a private meeting on the 2nd with Senator Shelley Moore Capito, the Republican negotiation representative.

When announcing a $2.25 trillion social infrastructure investment plan, President Biden stated that he would raise the corporate tax rate from the current 21% to 28% to secure investment funds.

Instead, President Biden communicated that a minimum tax rate of 15% on corporations and active tax enforcement by the IRS on the wealthy should generate $1 trillion in infrastructure investment funds.

A source explained, "President Biden's position is a solution to reach a substantive agreement." WP also reported that President Biden made a new concession amid stalled infrastructure investment bill negotiations.

President Biden is scheduled to meet again with Senator Capito on the 4th, the following day, to continue negotiations. U.S. Transportation Secretary Pete Buttigieg mentioned in a media interview on the 30th that the negotiation deadline with the Republicans is tight. Regarding this, the AP news agency assessed that the Biden administration has given the Republicans a one-week negotiation deadline.

WP reported that President Biden has not abandoned the corporate tax rate increase. Sources also indicated that President Biden still intends to raise corporate taxes and may pursue the increase separately from the infrastructure investment bill negotiations. Even if the infrastructure investment negotiations fail, the possibility of the Democrats unilaterally raising corporate taxes cannot be ruled out.

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