President Joe Biden on Wednesday announced a corporate tax increase that will provide funding for his $2 trillion infrastructure plan over the next 8 years.

The so-called “American Jobs Plan” pushes the corporate tax rate from the 21% established by former President Donald Trump to a whopping 28% and incentivizes companies to remain in the US by setting a 21% global minimum tax. The initiative also blocks companies from merging with foreign businesses to avoid taxation.  

President Biden’s infrastructure plan is “about making an investment in America – not just modernizing our roads or railways or bridges but building an infrastructure of the future,” said White House Press Secretary Jen Psaki.

A majority of the $2 trillion will go towards: 

  • Improving roads, bridges, and public transit
  • Upgrading the power grid to deliver clean electricity
  • Retrofitting homes, schools, hospitals, and other major facilities
  • Constructing a national network EV stations
  • Replacing lead water pipes
  • Upgrading sewer systems
  • Expanding broadband Internet

“I’m convinced that if we act now, that in 50 years, people will look back and say this was when America won the future,” said Biden, claiming the plan would be fully paid for in 15 years.

White House officials say the proposal will create millions of “good-paying union jobs” as the nation moves away from fossil fuel and ups the fight against Chinese manufacturing. Opponents worry about the implications of tax increases and lost jobs during a time of economic uncertainty.

“It seems like President Biden has an insatiable appetite to spend more money and raise people’s taxes,” argues Rep. Steve Scalise (R-LA).

“We need to be careful not to do anything that’s too big or too much in the middle of a pandemic and an economic crisis,” warns Rep. Josh Gottheimer (D-NJ). “It’s got to be responsible and both parties need to be at the table. This can’t just be jammed through without input and consideration from the other side.”

Biden is expected to unveil a second proposal in April – also valued at $2 trillion – that will fund domestic policy objectives including: 

  • Increased investment in child care and tax credits
  • Universal pre-kindergarten
  • Expanded affordable healthcare for the elderly and disabled
  • Housing infrastructure
  • Tuition-free community college
  • Increased pay for care workers

The second initiative, which includes massive investments for R&D in technology and climate science, will be paid for by increased taxes on Americans earning more than $400,000 per year.

“Put simply, these are investments we have to make,” said Biden. “Put another way, we can’t afford not to.”

Author’s Note: We have been expecting Biden to implement a tax increase, and here it is. Unfortunately when you increase taxes on a corporation, the corporation increases prices for the consumer. There is no such thing as a ‘corporate tax hike.’

Sources:

Eager to Build Infrastructure, Biden Plans to Tax Business 

Biden to announce up to $4 trillion infrastructure plan with massive tax hikes 

8 thoughts on “Biden Announces $4 Trillion Proposal, Corporate Tax Increase”
  1. Can anybody say $10 a gallon gas? Between Dementia Joe and his transportation secretary Butt-Gigg (Buttigieg), people won’t be able to afford to walk on the roads much less Drive on them. They want to make California’s taxes nationwide.

  2. The article only skims over the fact Corporations do not pay income taxes. Taxes to Corps are only an expense passed on to consumers, including government entities, in the form of higher prices.

  3. Again we see the party who claims to protect the weak and oppressed make ridiculous decisions that invariably affect those very people. When business is saddled with more government regulation and taxes they do not simply absorb the costs imposed upon them. They simply hand that cost directly to the consumer. Who is most affected by the rise in costs? The poor and elderly they are purportedly meant to help. Biden is already looking to cut social security and Medicare while additionally adding expense to absolutely everything required for Americans to survive. We’ve already seen a massive increase in the cost of gasoline and all fossil fuels. Who will suffer the increase in fuel costs including heating oil and gasoline? Again those who can least afford it. Automobiles already laden with unnecessary tracking devices and emissions standards have made the purchase of vehicles nearly impossible for those who can least afford it. How many people on welfare or social security or even those earning minimum wage can afford fifty thousand dollars for a car? How do they get to work without a car? Raise the minimum wage to fifteen dollars an hour and the businesses that must pay that wage will automatically hand the expense directly to the consumer. Again who suffers when those prices increase? Those who are on a fixed income of course. Not to mention corporations will choose to hire less people and change from full-time employees to part time employees. Democrats are not short sighted. They understand the consequences of their actions yet they continue to enact policies that directly hurt those they claim to protect. Once again we find no substance in liberal policies. We are dealing with more Obama era transfer of wealth issues. Wake up and smell the sewage people. Tax and spend policies are a direct road to fiscal failure. All you have to do is look at Illinois and it’s massive debt and junk credit status to see where this is headed.

  4. Yes, there is such a thing as a “corporate tax hike,” but as you say, they will just pass that on to the consumer by increasing prices. But they will still pay more taxes…

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