Biden offers tax concession in infrastructure talks with Republicans

US President Joe Biden

Washington, (Asian independent) US President Joe Biden has offered to take the proposed corporate tax increase off the table during infrastructure talks with Republicans, local media reported.

Citing a person familiar with the talks, The Washington Post said on Thursday that Biden raised the idea during a private meeting on Wednesday with Senator Shelley Moore Capito, the top Republican negotiator, in an attempt to broker a compromise, Xinhua news agency reported.

Biden shifted the focus to a different part of his infrastructure proposal, which would amount to a new minimum corporate tax of 15 per cent, the person said.

It aimed to preserve the President’s 2020 campaign pledge not to raise taxes on Americans making under $400,000, while steering clear of the “red line” set down by Republicans who see the 2017 tax cuts as their crowning economic achievement, according to the Post.

Biden had proposed raising the corporate income tax rate from 21 per cent to 28 per cent to help pay for his $2.3 trillion infrastructure plan, which was opposed by Republicans and the business community.

White House Press Secretary Jen Psaki said on Thursday that Biden’s push for a minimum corporate tax was not a new proposal for the President and it was in his original American Jobs Plan.

Psaki also clarified that Biden continues to believe that corporations can pay more and the president still intends to seek the corporate tax increase.

Biden and Capito are scheduled to meet again on Friday to discuss a possible infrastructure deal.