US President Joe Biden on Wednesday argued in support of his more than $ 2 trillion infrastructure plan and proposed tax hikes to finance those costs.
In his speech, the President highlighted the scale of the economic hardships experienced by American families during the pandemic, noting that the economic turmoil has been particularly hard on the country’s non-white population.
Biden criticized approaches in the recent US past, noting that “we have stopped investing in our future.”
Touching upon the international aspect of the problem, the President recalled the rivals of the United States, in particular China.
Referring to his earlier proposal to raise the corporate tax to 28 percent, Biden stressed the need for a balanced approach to this issue.
According to the president, he is ready to listen to proposals for a smaller than 28 percent increase in corporate tax.
Biden also emphasized that tax reform is supported by the majority of Americans, and pointed to the need for cooperation between Democrats, Republicans and independents in solving the problem.
Republicans and even some Democrats are opposed to a number of key elements of the plan the president announced a week ago. In order for the initiative to be implemented, it must be approved by Congress.
Biden’s plan is eight years long and includes massive investments in roads and bridges, home remodeling, expanding broadband Internet access, elderly care, developing domestic manufacturing and building high-speed railways.
To a large extent, these expenses are planned to be financed by raising the corporate tax to 28 percent. As part of the tax reform carried out by ex-President Donald Trump in 2017, the rate was reduced to 21 percent.
On Wednesday, the Treasury Department released details on the tax elements of the proposal, including plans to tighten audits. According to the department, this will raise about $ 2.5 trillion over 15 years.
“The largest companies in the world, including Amazon, are using various loopholes to avoid paying a cent of federal income tax,” Biden said, presenting his plan. “I don’t want to punish them, but it’s wrong.”
Amazon CEO Jeff Bezos said Tuesday that he is in favor of raising the corporate tax rate as part of a plan to modernize infrastructure, but did not support the full range of proposals under the Biden plan.
The entrepreneurial lobby and Republicans strongly criticize the initiative. The US Chamber of Commerce warned last month that tax hikes “will slow the economic recovery and make the US less competitive in the world.”