WASHINGTON – President Biden’s proposed tax increases on corporations as part of a $ 2.3 trillion infrastructure plan has sparked a skeptical reaction from some Democrats, who instead favor borrowing money to pay for investments or raising other taxes, like the gas tax, to do it.
The proposal would raise the corporate tax rate to 28% from 21% and increase taxes on companies’ foreign profits. The White House said the tax increases would cover, in 15 years, the cost of the $ 2.3 trillion package, which spends money on improving roads, bridges and transit systems, as well as expanding broadband access and a myriad other endeavors.
Republicans have widely rejected Biden’s proposed tax increases, but some Democrats are raising their own questions about the plan. With very narrow majorities in the House and Senate, Democrats will need near unanimous support in their party to advance the package without Republican votes, and many lawmakers are floating possible changes to the plan.
Representative Peter DeFazio (D., Oregon), chairman of the House Infrastructure and Transportation Committee, said he did not believe it was necessary to pay the full cost of the plan through tax increases. DeFazio said he would support an increase in the gasoline and diesel tax to pay for new investments over time, as well as more loans to cover part of the cost.
“When you borrow money for current consumption instead of borrowing money for investment, it is something different,” he said.