Biden Stuns When Asked About Corporations Moving Overseas To Avoid His Promised Tax Increases

Written by Martin Walsh

OPINION: This article contains commentary which reflects the author's opinion




Joe Biden is lashing out at Republicans who claim his $2.3 trillion spending package has nothing to do with infrastructure.

While speaking with reporters at the White House, Biden was asked if he was worried about corporations moving overseas to avoid his promised tax increases.

“There’s no evidence to that,” he said in response to a question about tax hikes.

“You’re talking about companies in the Fortune 500 that haven’t paid a single penny in tax for 3 years. Come on man,” he added.

When asked if he was worried, he responded: “Not at all, not at all.”

“I’m going to push as hard as I can,” Biden said. “Everybody else in the rest of the world is investing in infrastructure and we’re going to do it here.”

WATCH:

As noted by the Daily Mail:

Biden has proposed hiking the corporate tax rate in the US to 28 percent from 21 percent, which would partially undo the Trump administration’s cut from 35 percent in its 2017 tax bill.

The administration also wants to increase the international minimum tax rate that American companies pay on their foreign profits to 21 percent.

That tax plan would generate about $2 trillion over 15 years to pay for his $2.3 trillion infrastructure proposal.

And some Democrats are also questioning Biden’s method of paying for his plan.

Democratic Rep. Peter DeFazio of Oregon, the chairman of the House Transportation and Infrastructure Committee, told the Wall Street Journal he didn’t think paying for the full cost of the plan through tax increases was necessary.

“When you’re borrowing money for current consumption versus borrowing money for investment it’s a different thing,” he said.

Democrat West Virginia Sen. Joe Manchin also came out against Biden’s plan of raising the corporate tax rate to 28 percent.

Manchin said he is against raising the current 21% corporate tax rate — which was put in place by the 2017 tax overhaul under the Trump administration — to 28% as called for in the bill and instead supports a middle ground 25% rate, which he called “fair.”

The West Virginia senator said he would use the “leverage” he has in the 50-50 Senate to demand changes before voting to take up the bill, which has been introduced but expected to go through weeks or months of negotiations before being debated on the floor.

Manchin flexed his muscle in the interview saying that if he does not vote for the bill it is not getting done.

“If I don’t vote to get on it, it’s not going anywhere. So we’re going to have some leverage here. And it’s more than just me, Hoppy. There are six or seven other Democrats who feel very strongly about this. We have to be competitive and we’re not going to throw caution to the wind,” the senator said, but he did not say who the other Democrats are,” he said.

Given the tight Democratic majorities in Congress, Biden can’t afford to lose any members of his party when it comes time to vote on the massive infrastructure package.

If he loses one Senate Democrat, it’s highly likely the bill fails.