Biden publishes a full tax plan to raise $ 2.5 trillion in 15 years

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President Joe Biden will address Republican criticism of his $ 2.3 trillion infrastructure plan in a speech Wednesday, where he will defend his proposal that goes beyond bridges and includes money for housing, unions and a climate corps.

His speech comes as his Treasury Department unveiled its plan to revise its corporate tax code, which, if passed, would generate $ 2.5 trillion in revenue over 15 years to pay for the infrastructure package.

Biden’s proposed tax plan would raise the corporate tax rate to 28 percent, raise the de facto global minimum tax and crack down on companies that pay little or no income tax with their “book value.”

The president will attempt to refute the criticism and promote his job-enhancer plan in his comments later Wednesday.

President Biden will “talk about what infrastructure means in the 21st century and why it goes far beyond just roads and bridges,” a White House official told DailyMail.com.

Republicans have criticized the president’s plan to include items beyond the reach of traditional infrastructure. Biden’s plan spends billions on roads, bridges and highways, but it also funds additional projects such as broadband internet across the country, affordable housing, improvements to schools and daycare centers, and a civil climate corps.

The White House states that these items are linked to the country’s infrastructure.

He will vigorously refute the idea that investing in our power grid, in clean water, in super-fast internet, are anything but essential infrastructure if we are to create well-paid jobs, compete successfully with China, and ensure prosperity is shared with previously left out, ”the White House official said.

The administration also argues that the tax plan is necessary and that it aims to “ make US businesses and workers more competitive by removing incentives for offshore investment, significantly reducing profit shifts, reducing tax competition on corporate rates and tax preferences for clean energy production ” to offer. ‘

But corporate America is not convinced.

The Chamber of Commerce and Business Roundtable have pushed back against Biden’s tax increases, claiming they will crush US competitiveness – an argument that Republicans and some moderate Democrats have echoed.

The long list of items in Biden’s infrastructure proposal and his plan to raise the trillions needed to pay for his wishlist have become a dueling series of controversies for the administration as it struggles to get enough support on Capitol Hill to support it. parcel.

President Joe Biden will address Republican criticism of his $ 2.3 trillion infrastructure plan in a speech Wednesday

President Joe Biden will address Republican criticism of his $ 2.3 trillion infrastructure plan in a speech Wednesday

Biden’s attempt to pay for the package includes:

Increase the corporate tax rate

Biden would increase the corporate tax rate in the US from 21 percent to 28 percent. This move would partially undo the Trump administration’s cut in the corporate tax rate of 35 percent in its 2017 tax bill.

The White House argues that this would align the United States with other first world countries when it comes to a tax on corporations.

Double the de facto global minimum tax

Biden’s plan would double the de facto global minimum tax to 21 percent. It would also impose stricter requirements, so that companies would have to pay the tax on a higher proportion of revenues in different countries.

Increase global corporate tax

In addition, US officials are working with the G20 countries to implement a minimum global corporate tax rate as part of the government’s efforts to offset any drawbacks of their plan to increase the US corporate tax rate.

Finance Minister Janet Yellen urged the move on Monday, saying it would “ stop the race to the bottom. ”

“Competitiveness is about more than how US-headquartered companies stack up against other companies in global mergers and takeover bids,” noted Yellen. “It’s about ensuring that governments have stable tax systems that provide sufficient income to invest in essential public goods.”

The US is in talks with about 140 countries to develop a global agreement on minimum levies, led by the Organization for Economic Co-operation and Development, but the participants have not yet reached an agreement.

Set up an income tax for book value

The plan would introduce a minimum tax of 15 percent on the book income of large companies that report high profits but have low taxable income.

Book income is what companies report to investors and is often used to assess shareholder and executive payouts.

The tax – targeting companies that report large profits to investors but low tax payments – would only apply to companies with incomes in excess of $ 2 billion. That’s above the $ 100 million threshold that Biden advocated in the campaign.

As a result, only 180 companies would even reach the income threshold and only 45 would pay the tax, the Wall Street Journal noted.

Finally, the plan would replace inadequate incentives rewarding excess profits from intangible assets with more generous incentives for new research and development; Replace fossil fuel subsidies with incentives for clean energy production and step up enforcement to tackle corporate tax avoidance.

Biden would also increase the Internal Revenue Service’s budget so it can ramp up enforcement and tax collection.

The government has begun to defend its tax proposal, arguing that its long list of items in the infrastructure law is necessary to keep the country competitive.

Commerce Secretary Gina Raimondo took part in the daily White House press conference on Wednesday to claim that “the fact of the matter is the corporate structure, which has been broken today.”

‘Many companies – large profitable companies – do not pay corporate tax. So I would like to think that we can all agree that it needs to be improved, level the playing field, close the loopholes and have a discussion about how we do this together to achieve competitiveness. improve, ”she said.

She rejected criticism that the plan would destroy American jobs.

“We need to make these infrastructure investments to compete,” she said.

In his statement on Wednesday afternoon, Biden will also “call on Congress to set aside bias to find a path forward with him” on the infrastructure package.

With the Democrats in control of Capitol Hill by tight margins, the president cannot afford to lose votes from his own party.

And some Liberal Democrats have argued that Biden’s plan is too small.

Meanwhile, Republican Senate leader Mitch McConnell has referred to Biden’s plan as a “ Trojan horse ” for issues the Democrats want to advance. Other Republicans have argued that a lean, traditional infrastructure package could succeed with bipartisan support.

Commerce Minister Gina Raimondo said the current corporate tax structure is 'broken' and needs to be restored

Commerce Minister Gina Raimondo said the current corporate tax structure is 'broken' and needs to be restored

Commerce Minister Gina Raimondo said the current corporate tax structure is ‘broken’ and needs to be restored

And Republican Senator Roy Blunt of Missouri said he told the White House that if they want bipartisan support for an infrastructure plan, it only needs infrastructure.

‘I think it’s a big mistake for the administration. They know I think it’s a mistake, ”Blunt said on Fox News Sunday. And I also think it would be an easy win if we go back and look at roads and bridges and ports and airports and maybe even underground water systems and broadband. You’d still be talking about less than 30 percent of this whole package, and it’s an easy 30 percent to do. ‘

“The other about 70 percent of the package doesn’t have much to do with infrastructure,” he wrote on ABC’s “This Week.”

A CNN analysis found that traditional infrastructure projects make up 30 percent of Biden’s plan.

Biden’s plan includes $ 621 billion for transportation, $ 400 billion for home care, $ 300 billion for manufacturing, and $ 180 billion for research and development, according to a White House Fact Sheet.

Here’s a more detailed breakdown of what it contains:

  • $ 115 billion to modernize the bridges, highways, roads and highways that are most in dire need of repair – including 20,000 miles of highway and 10,000 minor bridges
  • $ 20 billion to improve road safety for all users
  • $ 85 billion to modernize existing throughput and help agencies expand their systems to meet rider demand
  • $ 80 billion for Amtrak repairs
  • $ 174 billion investment in electric vehicles
  • $ 25 billion at our airports
  • $ 50 billion to protect critical infrastructure
  • $ 17 billion in inland waterways, coastal ports, land ports and ferries
  • $ 111 billion to replace lead pipes and service lines and to modernize drinking water and sewage systems
  • $ 100 billion to protect nature-based infrastructure – land, forests, wetlands, watersheds, and coastal and ocean resources; to build an electrical system; expand tax benefits for clean energy generation and storage; block oil wells and mines; and redevelop Superfund sites
  • $ 40 billion to improve the public housing infrastructure in America
  • $ 100 billion to upgrade and build new public schools
  • $ 12 billion for community colleges
  • $ 25 billion to help improve childcare facilities
  • $ 10 billion in the modernization, sustainability and resilience of federal buildings
  • $ 400 billion to expand access to quality, affordable home or community care for aging family members and people with disabilities
  • $ 35 billion investment in climate science
  • $ 10 billion for a new Civilian Climate Corps
  • $ 100 billion in workforce development programs, including a call to Congress to ensure that all employees have a free and fair choice to join a union through the Right to Organize Protection Act (PRO) to to take
  • $ 300 billion for production
  • $ 180 billion for research and development