GnNews:Biden Wants to Pay for Infrastructure Plan With 15 Years of Corporate Taxes
31 March 2021
WASHINGTON — President Biden intends to pay for the $2 trillion package of infrastructure spending he will propose on Wednesday with a substantial increase in corporate taxes, people briefed on the plan said Tuesday.
The scale of the infrastructure program — one of the most ambitious attempts in generations to shore up the nation’s aging roads, bridges, rail lines and utilities — is so big that it will require 15 years of higher taxes on corporations to pay for eight years of spending, they said.
Despite his ambitious programs, Mr. Biden had pledged that his long-term economic agenda would not add further to the growing national debt. But the fact that his proposed tax increases would not cover his spending over the same period shows the challenge he has in balancing his big goals and the deficit.
Mr. Biden’s proposals include raising the corporate tax rate to 28 percent from 21 percent and efforts to force multinational corporations to pay significantly more in tax to the United States on profits they earn and book overseas. The corporate tax rate had been cut under President Donald J. Trump from 35 percent to 21 percent.