WASHINGTON – President Biden’s proposed tax increases for businesses as part of a $ 2.3 trillion infrastructure plan have sparked a skeptical reaction from some Democrats, who instead prefer to borrow to pay for investments or raise other taxes, such as the gasoline tax, to do so.
The proposal would raise the corporate tax rate from 28% to 28% and increase corporate income taxes. The White House said tax increases, over 15 years, would cover the cost of the $ 2.3 trillion package, which spends money on improving roads, bridges and traffic systems, along with the expansion of broadband access and countless other efforts.
Republicans have widely rejected Biden’s proposed tax increases, but some Democrats raise their own questions about the plan. With very narrow majorities in the House and Senate, Democrats will need almost unanimous support in their party to advance the package without Republican votes, and many lawmakers are proposing potential changes to the plan.
Representative Peter DeFazio (D., Ore), chairman of the House Transport and Infrastructure Committee, said he did not believe it was necessary to pay the full cost of the plan through tax increases. DeFazio said it would support an increase in the diesel and diesel tax to pay for new investments over time, as well as more loans to cover part of the cost.
“When borrowing money for current consumption versus investment loans, it’s a different thing,” he said.