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Biden says no evidence higher corporate taxes will drive companies abroad

EconomyApr 05, 2021 04:05PM ET
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© Reuters. FILE PHOTO: U.S. President Biden holds Cabinet meeting at the White House in Washington

By Andrea Shalal

WASHINGTON (Reuters) -President Joe Biden on Monday defended his proposal to raise corporate taxes to help pay for his infrastructure spending plans, saying he was not worried the hike would harm the economy and that there was no evidence it would drive business abroad.

Speaking to reporters in Washington after spending Easter weekend at the Camp David presidential retreat in Maryland, Biden again took aim at the 50 or 51 corporations on the Fortune 500 list that paid no taxes at all for three years, saying it was time for them to pay their share.

Asked if raising the corporate tax rate to 28% from 21% would drive away corporations, Biden said: "Not at all ... there's no evidence of that."

Biden's predecessor, Donald Trump, and Republican lawmakers cut the corporate rate to 21% in 2017 from 35%. Trump repeatedly promised to tackle the nation's crumbling infrastructure during his presidency but never delivered on that.

Biden's plans have drawn criticism from both Republicans and Democrats, including Democratic Senator Joe Manchin, whose support could be critical to ensuring passage in a Senate split evenly between the two parties.

White House press secretary Jen Psaki told reporters the Democratic president was open to discussions with Republicans and Democrats about how to fund the proposed investments.

Asked if the administration had analyzed the cost of agreeing to a lower corporate tax rate of 25%, the highest Manchin says he would accept, Psaki noted the 28% rate would be lower than it was at any time since World War Two.

"Combined with the other tax proposals, it would pay for the totality of the package. That’s why he felt it was a responsible proposal to make," Psaki said of Biden.

"There will be different ideas for pay-fors, there will be different ideas for tax proposals. That will all need to be weighed … with leaders in Congress."

FOCUS IN REDUCING INEQUITIES

The U.S. Chamber of Commerce, the largest U.S. business group, last month called Biden's proposed hike in corporate taxes "dangerously misguided" and warned it would "slow the economic recovery and make the U.S. less competitive globally."

But the International Monetary Fund backed the overall idea of richer countries using taxes to reduce inequalities exposed by the COVID-19 pandemic, including progressive income taxes, inheritance and property taxes, and taxes on "excess" corporate profits.

Biden, whose agenda is focused heavily on addressing racial and gender inequities, said other countries were investing billions of dollars in infrastructure, and the United States needed to do so as well to boost its competitiveness.

"I'm going to push as hard as I can to change the circumstances so we can compete with the rest of the world," he said. "Everybody else in the rest of the world is investing in infrastructure and we're going to do it here."

Biden pushed back at Republican criticism that his plan is filled with items unrelated to infrastructure.

He listed clean water, schools and high-speed rail as key items that also counted as infrastructure, in addition to more traditional projects such as bridges, highways and roads.

Energy Secretary Jennifer Granholm said on Sunday that Biden would prefer to secure Republican backing for his plan, but if that failed to happen, he would likely support using a procedural strategy called reconciliation to allow Democrats to pass it by a simple majority in the Senate.

Senate Republican leader Mitch McConnell said last week that Biden's infrastructure plan was "bold and audacious" but would raise taxes and increase debt. He vowed to fight it "every step of the way."

Biden says no evidence higher corporate taxes will drive companies abroad
 

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Comments (23)
Joel Schwartz
Joel Schwartz Apr 05, 2021 7:57PM ET
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Republicans think the country runs on IOUs. Its literally the government’s duty to collect taxes. Or we could disband the police and military if you want to cut costs, I guess.
Notvery Goodathis
Peteymcletey Apr 05, 2021 7:57PM ET
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you literally described the democratic party. your ignorance is saddening
William Faulkner
William Faulkner Apr 05, 2021 7:39PM ET
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Seriously. An increase in corporate taxes is ultimately passed on through price increases. In the end consumers are tax payers and tax payers are consumers. It's amazing in the end it all comes from.....us.
rob kealey
rob kealey Apr 05, 2021 6:59PM ET
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I'll take him over the Yo Semite scammer in chief.
Mox Mox
Mox Mox Apr 05, 2021 4:57PM ET
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Biden see no evidence of a future event happening.... seriously? Please read Aristotelian logic and then try to say your statement again
peter neal
peter neal Apr 05, 2021 3:57PM ET
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The world is laughing at us and wondering why we are letting someone with aggressive Dementia run the Western World. Let them in....
Boyoung Schang
Boyoung Schang Apr 05, 2021 3:57PM ET
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He is the leader of the free world
danny Levine
danny Levine Apr 05, 2021 3:57PM ET
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lmao he will turn America into North Korea
Joel Hauser
Joel Hauser Apr 05, 2021 3:26PM ET
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Republicans : Socialism for wallstreet but not mainstreet.
Notvery Goodathis
Peteymcletey Apr 05, 2021 3:26PM ET
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Reverse logic here. Democrats are the ones who bailed out the banks in 2008.
Connecticut Yankee
A_Jaundiced_Eye Apr 05, 2021 2:55PM ET
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Are we sure it was HUNTER Biden who was the one on Crack ?
Connecticut Yankee
A_Jaundiced_Eye Apr 05, 2021 2:35PM ET
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Up Next: "Biden Predicts Higher Gas Prices Will Make People Drive More."
James Pattison
James Pattison Apr 05, 2021 2:21PM ET
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This guy is not sentient... he must think everyone is not smart like him and doesnt know hes lying straight to them
Diddl One
Diddl One Apr 05, 2021 2:20PM ET
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he said;" no evidence" his proposed corporate tax increase would drive companies away from the United States.?? right. I guess that's why Janet Jellen is calling for a WORLDWIDE minimum tax. Maybe that's why the super rich like Musk and Besos have set their eyes on space and Mars. To get away from these ....
Connecticut Yankee
A_Jaundiced_Eye Apr 05, 2021 2:11PM ET
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Fantastic IRONY here that Biden announced his position at his "Camp David RETREAT;" because that's Exactly what his plan is going to do to our country versus China: Retreat!
Connecticut Yankee
A_Jaundiced_Eye Apr 05, 2021 2:08PM ET
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Yes, yes, higher taxes!  We should use Europe as our model, because the EU is doing such a great job at...umm..The Virus, right?  Ok, Ok, maybe not the virus, but their Economies?  Well Ok, scratch the economies, maybe...Immigration? No? Uhh...Technology?  Help me out here please...
Diddl One
Diddl One Apr 05, 2021 2:08PM ET
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doing great in soccer ;-)
Connecticut Yankee
A_Jaundiced_Eye Apr 05, 2021 2:08PM ET
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Diddl One Thanks.  You got me.  And soccer employs...how many?  More than the U.S. Service Sector?
Petros Kazakidis
Petros Kazakidis Apr 05, 2021 2:08PM ET
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Current Account Surplus.
CHAD TENDIES
CHAD TENDIES Apr 05, 2021 2:08PM ET
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The USA is about to see what tough times are really like
Connecticut Yankee
A_Jaundiced_Eye Apr 05, 2021 2:08PM ET
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Biden's hero is FDR.  Joe's going to get a chance to be just like him - Biden's going to be a president during a Depression, too.
robert mandry
Rob2Trade Apr 05, 2021 1:21PM ET
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Because Joe Biden is an expert at business, and has created tens of thousands of jobs, by investing in and running companies. Oh wait, that was Donald Trump.  Bidens hasnt the slightest clue about business or how taxes affect it. This headline is as worthless as a Democrat professing they support a strong border.
John Miller
John Miller Apr 05, 2021 1:19PM ET
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🤯🤯🤯🤯🤯🤯🤯🤯🤯
John Miller
John Miller Apr 05, 2021 1:18PM ET
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If everything is free, why do we need taxes?
John Miller
John Miller Apr 05, 2021 1:16PM ET
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What planet is he on?
Butch Einsel
Butch Einsel Apr 05, 2021 1:00PM ET
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easy to talk about taxes when China made you $$$$
Ivo Wagner
Ivo Wagner Apr 05, 2021 12:49PM ET
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Someone has to teach basic economics to this gentleman.
rizwan aslam
rizwan aslam Apr 05, 2021 12:48PM ET
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Put 100% tax
Casador Del Oso
Casador Del Oso Apr 05, 2021 12:38PM ET
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You go Joe! I will be loading up on XOUT once the SP500 hits 2200. A once in a lifetime opportunity.
Thien Hoang
Thien Hoang Apr 05, 2021 12:33PM ET
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Thanks to ur ****that make all stock down..
danny Levine
danny Levine Apr 05, 2021 12:30PM ET
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phuaking daylight robbery!
 
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