Washington-President Biden’s plan to increase taxes on companies as part of a $2.3 trillion infrastructure plan has aroused suspicion among some Democrats, who instead prefer to borrow money to pay for investments or raise other tax rates. For example, gasoline tax.
The proposal will increase the corporate tax rate from 21% to 28% and increase the tax on the company’s foreign income. The White House said that the tax increase will cover the cost of the $2.3 trillion package within 15 years. The money will be used to improve roads, bridges and public transportation systems, as well as expand broadband access and a lot of other work.
Republicans have widely rejected Biden’s proposed tax increase, but some Democrats have raised their own questions about the plan. Since the majority of seats in the House and Senate are very narrow, Democrats will need near-unanimous support from political parties to advance the package without a Republican vote, and many lawmakers are floating potential changes to the plan.
The chairman of the House Transportation and Infrastructure Committee, Rep. Peter DeFazio (Peter DeFazio), said that he does not believe that tax increases are necessary to cover the full cost of the plan. Mr. Di Fazio said that he will support the increase in gasoline and diesel taxes to pay for new investments over time, and the increase in borrowing to cover some of the costs.
He said: “When you borrow money for regular consumption instead of borrowing money for investment, that’s a completely different thing.”