Biden corporate tax hike may face resistance from influential trade groups: report
President Biden’s proposal for the biggest corporate tax hike in decades has prompted familiar critics, but also from groups known for cheering infrastructure spending-- jeopardizing its viability.
The American Jobs Plan is an eight-year initiative that will make massive investments in the nation’s roads, bridges and other infrastructure. The Biden plan will be funded by raising the corporate tax rate from 21% to 28% and increasing the global minimum tax on U.S. corporations from 13% to 21%.
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The Wall Street Journal’s editorial board wrote, “Mr. Biden’s corporate increase amounts to the restoration of the Obama-era corporate tax burden, only much more so.”
The Financial Times reported late Thursday that some of the country’s largest trade groups are unhappy with the increase.
Cathy Schultz, vice-president for policy at the National Foreign Trade Council, a lobby group for multinationals, told the FT, “They have no idea how difficult it’s going to be for U.S. companies to compete against foreign competitors who are not subject to these high minimum taxes.
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“There are some companies that have done really well during the pandemic, but there are an awful lot of them who are in really difficult circumstances,” she said.
John Kartch, vice president of communications at the right-leaning Americans for Tax Reform, told FOX Business. "The corporate tax, it's just not absorbed by the companies, it's shouldered by workers in the terms of lower wages. That's something to consider, even a left-of-center economist will tell you that some measure is borne by lower wages."
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Speaking at a carpenters union training center in Pittsburgh, Biden drew comparisons between his hard-hatted proposed transformation of the U.S. economy and the space race — and promised results as grand in scale as the New Deal or Great Society programs that shaped the 20th century.
“It’s not a plan that tinkers around the edges,” Biden said. “It’s a once-in-a-generation investment in America unlike anything we’ve seen or done since we built the interstate highway system and the space race decades ago. In fact, it’s the largest American jobs investment since World War II. It will create millions of jobs, good-paying jobs.”
Fox Business' Megan Henney and the Associated Press contributed to this report