Joe Biden’s economic adviser on Sunday pushed for a ‘global minimum tax’ on companies to close loopholes in companies moving abroad to avoid rate hikes in the U.S.
“The idea is to make sure companies pay a fair share,” Cecilia Rouse, chairman of the Council of Economic Advisers, told Fox News Sunday.
“To close some loopholes that actually caused more companies to put more money offshore – from US soil,” she continued. “And having a global minimum tax so that we work with the rest of our trading partners, so that we work with the rest of the world, so that companies worldwide pay their fair share,”
President Biden is basically saying, “ Look, everyone should be paying their fair share, ” she continued.
To help pay trillions more in federal spending, Biden has proposed increasing taxes on individuals, businesses and capital gains.
Cecilia Rouse, chair of the Council of Economic Advisers, told Fox News Sunday that the Biden government is pushing for a ‘global minimum tax’ on businesses to keep the US competitive
“The idea is to make sure companies pay their fair share,” Rouse said, adding, “We don’t want to be disadvantaged” with other countries.
In a joint session Wednesday, Biden outlined raising taxes – including on individuals, businesses and capital gains – to fund trillions in proposed spending. He wants to increase the corporate tax rate from 21 percent to 28 percent
So far, Biden has spent about $ 6 trillion since taking office, including the $ 1.9 trillion US bailout plan already passed in Congress.
As part of Biden’s ‘Build Back Better’ initiative – including real and ‘human infrastructure’ – he proposes the $ 2.3 trillion US jobs plan and $ 1.8 trillion for the American Families Plan.
The American Jobs Plan, proposed by Biden in April, includes a 28 percent increase in the corporate tax rate from the current 21 percent in a partial reversal of former President Donald Trump’s 2017 tax cuts.
Before the GOP’s tax cuts, the corporate rate was 35 percent between 1993 and 2017.
The current proposal also imposes a higher global minimum on companies’ foreign revenues.
Rouse says Biden doesn’t want to hurt the US with these walks, though.
“Yes, we don’t want to be disadvantaged internationally, so he is also working with other countries so that we have a minimum tax internationally so there is no race to the bottom,” she said.
Some countries have already indicated their willingness to negotiate a “ global minimum, ” while the majority of top CEOs agree that the plan to raise the corporate tax rate to pay for its near-spending proposal will increase competitiveness and slow hiring. and will harm wage growth.
Corporate tax rates were 35 percent from 1993 to 2017, when Donald Trump’s cuts were enacted and the rate dropped to 21 percent
Aside from the corporate tax increases, Biden has also suggested raising rates for Americans earning more than $ 400,000 and raising capital gains rates for those earning $ 1 million or more.
Both Republicans and Democrats have criticized Biden’s ambitious plans and wonder how he will pay for them.
“The words of this speech sounded like what you would hear from a 15-year-old if you gave him a credit card with no credit limit,” Chris Christie, former New Jersey governor, said during a discussion on ABC News.
“Except the words came from the mouth of an adult who should know better,” the Republican added.
Christie’s comments came after Biden’s first speech at a joint session of Congress on Wednesday.
Senator Joe Manchin, a centrist Democrat who could derail any Biden proposal, said he’s not super “ comfortable ” with the new plan’s price tag.
“It’s a lot of money, a lot of money,” the West Virginia senator told reporters on Capitol Hill. “That makes you very uncomfortable.”
“We now have $ 28.2 trillion in debt, so you have to be very careful. There’s a balance to be found here, ”Manchin continued.
“Will we be able to be competitive and pay for what we need in the country?” he said. ‘We have to find out what our needs are and maybe make some adjustments. Who knows?’
Senator Bob Casey, a Democrat from Pennsylvania, said, “We will probably have some work to do in our own caucus. ‘I think we are still a long way from that. I don’t think there is another 50-vote consensus. ‘
“In a way, we negotiate against ourselves,” he added. “I don’t think our job is just to be able to say, ‘Well, that piece over there was two-fold,’ and wait for the pat on the back.”
Former White House economic adviser Steven Rattner, who worked for Barack Obama when he was president, warned of Biden’s “ massive ” spending plans.
“Of course I am concerned about inflation,” Rattner told MSNBC’s “Morning Joe” on Thursday. ‘Of course I am concerned about the shortage and the debt. But I’m also concerned about the execution job here. ‘
“This is a huge execution job,” said Rattner. The last plan, the job plan alone, contained 76 different initiatives. They all have to be created and executed. ‘
‘The chance of errors and the failure of the implementation is high here.’
“And if it doesn’t work out,” he continued, “I think it will delay the cause of progressivism for decades to come,” he added. “Getting it done, I think, will in some ways be the president’s biggest challenge. It has to deliver not only a passage, but real results for Americans, and programs that people think will work, or we’ll go back to government as the income. ‘