Biden Open to Increasing Corporate Tax Rate to Between 25 – 28 percent

On May 6, President Joe Biden said he wants the corporate tax rate to, ideally, be “between 25 and 28” percent. This is a new marker in the ongoing negotiations regarding how to fund a key infrastructure bill. At a recent event in Louisiana, Biden said, “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[%]. That’s a couple hundred billion dollars, and we can pay for these things.”

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This was the first time that President Biden openly acknowledged his initial proposal of increasing the corporate tax rate from the present 21% to 28%.

Also called the Americans Jobs Plan, President Joe Biden’s domestic policy bill will be investing a sum of $2 trillion into renovating and rebuilding various parts of the U.S. infrastructure, from bridges to roads to expanded broadband. 

Biden has pledged to raise funds for the bill without further adding to the federal deficit, mainly by increasing the corporate tax rate that was previously reduced as part of the 2017 Tax Cuts and Jobs Act passed by the Trump administration. 

The increased corporate tax rate has already been endorsed by West Virginia’s Democratic Senator Joe Manchin, who will likely be the one lawmaker with the most control over the fate of the new bill if President Biden is unable to get Manchin’s Republican colleagues to pledge their support for it. 

So far, most Republicans in Congress have mentioned that making changes to the 2017 tax cuts bill will not go down favorably with the GOP. Mitch McConnell, the Senate Minority Leader, has also predicted that President Biden will not get a single Republican vote in support of the American Jobs Plan.