The president of the Council of Economic Advisers, Cecilia Rouse, said Sunday that the president is proposing corporate tax increases because it is “the right thing to do.”
CBS “Face the Nation” host Margaret Brennan lobbied Rouse on Biden’s proposal to raise the corporate tax rate from 21% to 28% or potentially more after Rouse said the 2 Biden’s trillion dollars is “good for the economy.”
BIDEN’S $ 2T EXPENDITURE PLAN, BILLED AS AN INFRASTRUCTURE INVOICE, SPENDS LESS THAN HALF ON INFRASTRUCTURE
“These are 15 years of higher taxes to pay for eight years of expenses. Can you really say that’s not a cost?” Brennan asked.
“I’d say the reason the president is proposing these corporate tax increases is because that’s the right thing to do,” Rouse said. “He believes that we should … encourage these corporations to pay their fair share.”
The Biden administration announced a massive spending plan last week that it said would be paid for with an increase in the corporate tax rate and taxes on wealthy individuals. The plan would reverse part of former President Donald Trump’s 2017 tax cuts.
While Biden has been promoting the proposal as a way to address infrastructure concerns, a Fox News analysis of the “American Job Plan” shows that less than $ 750 billion of spending would actually go to infrastructure.
BIDEN INCREASE IN CORPORATE TAXES COULD REDUCE THE ECONOMY, EXHAUST US JOBS.
Despite Rouse calling Biden’s proposals “good for the American economy,” the Tax Foundation says corporate tax increases could lower GDP and eliminate 159,000 jobs.
“The economic literature shows that corporate income taxes are one of the most damaging types of taxes for economic growth, as capital investment is sensitive to corporate taxes,” says an analysis from the group. “The corporate income tax increases the pre-tax profitability that companies need to seek investment opportunities, reducing the pool of investments that companies consider worth making. This reduces economic output in the long run, reducing wages and standard of living. “
Senate Republicans vehemently oppose the spending plan. They say it is too expensive and goes beyond infrastructure needs, such as replacing aging bridges and roads.
“It redefines the infrastructure to include hundreds of billions of dollars of spending on priorities like healthcare, workforce development and research and development,” said Sen. Rob Portman, R-Ohio.
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Sen. Ted Cruz, R-Texas, said the $ 2 trillion plan is “really just the Green New Deal lite disguised as an infrastructure plan.”
“It contains radical far-left priorities like attacking American workers’ right-to-work protections, a huge boon to great labor bosses,” said Senate Minority Leader Mitch McConnell, R-Kentucky.