On Monday, Sen. Joe Manchin, D-W. Va. said that he would not support President Biden's proposed tax increases on corporations as part of a nearly$ 2.3 trillion spending proposal, potentially causing a major blow to a key revenue increase included in the Infrastructure initiative.
Biden's plan would increase corporate minimum tax to 28% from 21% and increase the global corporate tax on U.S. companies to 21% from about 13%. The White House said that the tax increases would pay for the proposed investments in the nation's roads and bridges, transit systems, schools and hospitals over the course of 15 years.
WEALTHY AMERICANS SHIELD 20% OF THEIR INCOME FROM The IRS, STUDY SHOWS But Manchin, a moderate democrat who has become one of the most powerful members of the 50 -- 50 Senate, said that 28% is too high and could hurt American competitiveness.
He suggested that the package could be completed by boosting the corporate rate to 25% and closing the tax loopholes used by wealthy Americans to dodge taxes. As this bill is needed today, it needs to be changed, he said during a radio interview with West Virginia MetroNews.
Bottom line: this is what the law is all about. This bill will not be in the same form you 've seen people talk about or seen people talk about. YELLEN SAYS HIGHER TAXES NEEDED IN LONG TERM TO FINANCE US SPENDING Republicans have widely rejected the obscure economic package, meaning that Democrats will most likely have to pass the measure through budget reconciliation, the vast Senate rule the party used last month to approve Biden's$ 1.9 trillion American rescue plan without a single GOP vote.
With narrow majority in the House and Senate, Democrats will need to secure the support of almost every member in their party to push through the package.
CLICK HERE TO READ MORE ON FOX BUSINESS? If I do n't vote to get on it, then it's not going anywhere, so we 're going to have some leverage here, Manchin said.
There are six or seven other Democrats who feel strongly about this issue.
We have to be competitive and we 're not going to throw caution in the wind. How do I GET FOX BUSINESS on the go by CLICKING HERE The White House has said it welcomes feedback from the lawmakers on how best to address infrastructure, which is broadly viewed as a bipartisan issue in Washington. The president felt it was responsible to propose a way to pay for his proposals, White House Press Secretary Manchin said on Monday when asked about Jen Psaki's comments. He knows some members think it's too small, others think it's too big, we fully expect that from Sen. Manchin and other members.
We expect the question of how do we pay for the package if we want to pay for the package will be part of the disussion.
We 're open to ideas.