The White House is calling on Republicans to suggest alternative ways to pay for President Joe Biden’s $2.25 trillion infrastructure and jobs plan as they voice opposition to his proposed corporate tax hikes.
White House press secretary Jen Psaki bristled Thursday when asked about Republican opposition to increasing the corporate tax rate to 28%, a reform floated by Biden a day earlier in a Pittsburgh speech. That hikes the rate from 21%, a rate ushered in by former President Donald Trump’s 2017 tax cut law.
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“Maybe they don’t believe we should pay for it. If so, they should say that,” Psaki told reporters. “We don’t believe that the cost should be on the backs of the American people. We believe that corporations should be able to bear the brunt for investing in America’s workers, but they can come forward with their ideas.”
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To illustrate her point, Psaki displayed a slide to show the 21% corporate rate in historical context, saying that level is “lower than it’s been in the past several decades.” Biden has also proposed imposing a global minimum tax of 21% on U.S. companies.
Psaki used the same tactic to dodge Democratic complaints Biden’s plan would fail to roll back Trump’s $10,000 cap on state and local tax deductions.
“If Democrats want to propose a way to eliminate SALT, which is not a revenue raiser, as you know it costs more money, and they want to propose a way to pay for it, and they want to put that forward, we’re happy to hear their ideas,” she said.
The SALT dispute shows how the Democratic president will need to convince not only Republicans but some Democrats to support his plan, suggesting an uphill fight on Capitol Hill.
The Republican reaction to Biden’s tax reforms is critical in terms of how the White House and congressional Democrats can pass Biden’s plan. Psaki indicated the administration would like to see progress with negotiations by Memorial Day, so the House and Senate can clear the measure this summer.
Senate Minority Leader Mitch McConnell and his Republican colleagues insist tax hikes are nonnegotiable, given the scope and scale of Biden’s framework. Psaki, however, wouldn’t engage with questions regarding Biden’s own red lines.
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While urging critics to provide details, Psaki also sidestepped queries for more information on how many jobs Biden’s “American Jobs Plan” is projected to create.
“We certainly expect there’ll be a range of numbers that you all can refer to that are done by outside analysts and that that’s a really effective way to give a sense to the American people of what can be expected from this package,” she said.
