Senate Republicans and President Joe Biden talked twice this week about a path to a bipartisan infrastructure deal and, after the two conversations, plan to keep the negotiations going on Monday.
Sen. Shelley Moore Capito, a West Virginia Republican and lead GOP infrastructure negotiator, talked with Biden for a second time on Friday.
The two spoke by phone about a way to bridge the gap between Biden’s $1.7 trillion infrastructure plan and the GOP’s much narrower $928 billion proposal, Capito spokeswoman Kelley Moore said.
“Sen. Capito and President Biden agreed to connect again on Monday,” she added.
The continuation of the talks has raised hopes that a bipartisan deal is within striking distance.
Capito met with Biden on Wednesday, and the president appeared to make a major concession by offering to abandon a plan to pay for his infrastructure proposal by raising corporate tax rates from 21% to 28%.
The tax hike was a non-starter for Republicans, who cut the corporate rate in their signature tax cut bill in 2017.
Biden’s tax increase proposal is a problem for Democrats, too.
Key centrist Sen. Joe Manchin of West Virginia said raising the rate to 28% was too high and would kill small businesses. He called for the hike to be reduced to 25%.
Instead of the corporate tax increase, Biden pitched a new minimum corporate tax of 15% in order to snag corporations that escape paying any taxes.
White House press secretary Jen Psaki said the president plans to keep on talking to the GOP as well as a group of centrist Democrats who are interested in a bipartisan deal with Republicans.
“We’re going to see how those conversations go,” Psaki said. “We’re going to keep a range of pathways open to move these bold ideas forward.”
Biden’s biggest obstacle may be liberal Democrats, who do not want the president to shrink his $1.7 trillion proposal and have long sought to reverse the GOP tax cuts.
Speaker Nancy Pelosi, a California Democrat, issued a statement on Friday in response to the weak jobs report in which she called on Congress to pass Biden’s broad and costly infrastructure plan, which includes $400 billion for elder care and, in a second bill, funding for universal preschool and free college.
“Democrats are committed to bold action to advance prosperity, opportunity, and justice in America and hope that Republicans will recognize the urgency of this mission,” Pelosi said.
