Mitt Romney (R-Utah) and John Hoeven (RN.D.) told President Biden on Monday they are opposed to raising the corporate tax rate to pay for their proposed infrastructure package of $ 2.25 trillion. of dollars, according to people who are familiar with the matter.
Why is it important?: Opposition from Romney and Hoeven, the only two Republican senators at Monday’s bipartisan Oval Office meeting, suggests Biden will have a hard time finding Republican support to pay his spending proposals on roads, bridges and rising health care corporate rates.
- The White House continues to look for evidence that there are Republicans willing to entertain some of the president’s proposals, including Biden’s plan to increase the corporate rate from 21% to 28%.
- If administration officials conclude that Republican senators are only interested in drawing red lines, they may be more inclined to follow a purely partisan path and seek 50 Democratic votes in the Senate to pass a bill through the budget reconciliation process. .
- The president himself told reporters at the start of the meeting, “I’m willing to commit, I’m willing to see what we can do and where we can meet.”
What they say: While Romney and Hoeven are in favor of an infrastructure package, they said they wanted to see a more specific payment mechanism (gasoline taxes and user fees) to help fund individual projects.
- “There is broad support for infrastructure and I think a bipartisan bill is possible, but we need to find an agreement to make these updates in a specific way that does not raise taxes,” Hoeven said in a statement.
- “I know my Democratic friends are more inclined to seek the general revenue fund so taxpayers can collect the bill, but my inclination is more toward people who actually use a facility to pay them,” he said. said Romney. journalists on Capitol Hill.
Behind the scenes: Biden began the meeting by giving the floor to Maine Senator Angus King, an independent who argues with Democrats and who was a host of public television.
- King made sure everyone in the room had a chance to cast their sights and explain their positions.
- Romney acknowledged this and praised the president. “He was in listening mode and, and was kind enough to ask for our respective views,” he said.
The summary: Negotiations between Republicans in the Senate and the White House are just beginning, but their initial positions are miles apart.
- The great distance provides partisan Democrats more room to argue for Biden that he should pursue an agreement through reconciliation and not bother to try to lead the Republicans.