Biden seeks $2.5T in corporate tax hikes to fully pay for infrastructure

Source: The Hill | April 7, 2021 | Naomi Jagoda

The Treasury Department on Wednesday released a report detailing President Biden’s proposals to increase corporate taxes to fund infrastructure investments.

Department officials said the proposals would raise about $2.5 trillion over 15 years and fully offset the cost of the new infrastructure spending.

During a call with reporters, Treasury Secretary Janet Yellen argued that the plan will be beneficial for both the federal government and businesses.

“Tax reform is not a zero-sum game, with corporations on one side and government on the other. There are policies that are mutually beneficial,” Yellen said. “Win-win is a very overused phrase, but we have a real one in front of us now.”

Biden last week released a $2.25 trillion infrastructure plan that would be paid for over 15 years through corporate tax changes, including an increase in the corporate rate from 21 percent to 28 percent.

The plan has quickly faced opposition from Republicans and business groups, who argue it will make the U.S. business climate less competitive. It will need widespread support from congressional Democrats to be enacted, given that Democrats only narrowly control the House and Senate.

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