Biden proposes 15% corporate minimum tax, $1 trillion new infrastructure spending

Source: Reuters

“U.S. President Joe Biden offered to scrap his proposed corporate tax hike during negotiations with Republicans, two sources familiar with the matter said on Thursday, in what would be a major concession by the Democratic president as he works to hammer out an infrastructure deal. Biden offered to drop plans to hike corporate tax rates as high as 28%, and instead set a minimum tax rate that companies should pay instead at 15%, sources said. Biden’s new proposal, worth $1.7 trillion, would allow some $75 billion in unspent COVID-19 relief funds to be repurposed for the bill, one source said. It assumes that increased tax revenues from stepped-up enforcement would raise $700 billion over a decade, drops subsidies on fossil fuels to raise additional funds, and would impose a new vehicle-miles-traveled fee on commercial trucks. In return, Republicans would have to agree to at least $1 trillion in new infrastructure spending, one source said.” (06/03/21)