President Joe Biden delivers remarks on his American Jobs Plan near the Calcasieu River Bridge in Lake Charles, Louisiana, U.S., May 6, 2021.
Jonathan Ernst | Reuters
WASHINGTON — President Joe Biden on Thursday said he wants to see a corporate tax rate “between 25 and 28” percent, setting down a new marker in the ongoing negotiations over how to fund a major infrastructure bill.
“The way I can pay for this, is making sure that the largest companies don’t pay zero, and reducing the [2017 corporate] tax cut to between 25 and 28,” Biden said at an event in Louisiana. “That’s a couple hundred billion dollars, and we can pay for these things.”
The remarks were the first time Biden had explicitly acknowledged that his initial proposal of raising the corporate tax rate to 28%, up from 21%, was shifting amid negotiations on the massive infrastructure bill.
Dubbed the American Jobs Plan, Biden’s signature domestic policy bill would invest $2 trillion into rebuilding vast parts of the U.S. infrastructure, from roads and bridges to expanded broadband.
Biden has pledged to fund the bill without adding to the federal deficit, largely by raising the corporate tax rate that was slashed as part of the Trump administration’s 2017 Tax Cuts and Jobs Act.
The 25% rate has already been endorsed by West Virginia Democratic Sen. Joe Manchin, the one lawmaker who will likely have the most control over the fate of the bill, provided Biden can’t coax any of his Republican colleagues to support it.
This is a developing story, please check back for updates.