Posted on 11/25/2018 9:32:41 AM PST by yesthatjallen
The business community is bracing for Democratic proposals to raise the corporate tax rate to pay for infrastructure spending and other priorities.
Infrastructure is seen as one of the rare areas where Democrats and President Trump might be able to come to a deal, since both sides have called for improvements to the nation’s roads, railways and bridges.
The problem is how to pay for the new spending.
Many in Washington expect Democrats to push for a hike in the corporate tax rate, which was slashed under the tax law championed by Trump.
“I have no doubt that it will be considered,” said Marcia Hale, president of the infrastructure advocacy group Building America’s Future.
That’s a non-starter for business groups, and likely will be for Trump and most congressional Republicans as well.
“Talk of repealing any part of the tax reform bill is a nonstarter,” Ed Mortimer, U.S. Chamber vice president of transportation and infrastructure, said in a statement to The Hill.
The GOP tax law cut the corporate tax rate from 35 percent to 21 percent as part of an effort to make the U.S. more in line with other countries.
Many Democrats also thought the corporate tax rate was too high at 35 percent, but view the GOP cut as too large. Congressional Democrats also voted unanimously against the tax law, arguing that it disproportionately benefited businesses and wealthy individuals.
Democrats have already released some proposals to roll back the corporate tax cut and other aspects of the GOP tax law in order to pay for infrastructure.
Last year, top Senate Democrats proposed raising the corporate rate to 25 percent, and rolling back parts of the tax law that benefit the wealthy, to fund $1 trillion in infrastructure investments. The Democrats said that the corporate-tax increase would raise $359 billion over 10 years.
Outgoing Rep. John Delaney (D-Md.), who is running for president, has floated increasing the corporate tax rate to 23 percent to raise about $200 billion for infrastructure.
“This small change to the new tax law would be more than worth it, because smart infrastructure investment helps businesses compete and grow,” Delaney said in a letter to Trump earlier this year.
Henry Connelly, a spokesman for House Democratic Leader Nancy Pelosi (D-Calif.), the favorite to become Speaker next year, said that “Democrats are looking at a variety of options to pay for bold infrastructure investments in the next Congress.”
Rep. Peter DeFazio (D-Ore.), the top Democrat on the House Transportation and Infrastructure Committee, said on a call with reporters the day after the midterm elections that some people are talking about rescinding some of the tax cuts as a way to pay for infrastructure but that the decision will ultimately be up to the Ways and Means Committee.
DeFazio’s preference would be a more sustainable source of funding, In an interview with MarketWatch published Monday, DeFazio was somewhat critical of using a rescinding of the GOP tax cuts for the wealthy.
“Since we’re borrowing, what, a trillion and a half dollars to pay for the tax cuts, it doesn’t sound like real money, and it doesn’t sound sustainable,” he said.
Some business groups are preparing to defend the tax law’s corporate-rate cut.
ETC...
Funny thing is I bet they don't have buyers remorse.
I don’t either. Hope silicon valley gets hit with HUGE tax increases.
It's REALLY not a problem; Congress just MAKES it a problem!
SLASH the fat in spending, and cut off ALL AID to countries that hate America.
Hire PRISONERS to do some of the work. Easy-Peasy.
Just say No!
President Trump has his veto pen poised to strike down stupid bills
I am struggling to care. Elections have consequences. These corporate elites did nothing for the GOP in the midterms, and many of them would rather have open borders than anything else, so they’ll now have to deal with the policy consequences of voting in the dimms
I agree 100% that our infrastructure SUCKS...and s becoming dangerous and life-threatening.
However, hiking taxes is NOT the way to fix the problem. But, then, I’ve been bitchin’ about unconstitutional taxes since, oh, about 1912, LOL!
“Since we’re borrowing, what, a trillion and a half dollars to pay for the tax cuts, it doesn’t sound like real money, and it doesn’t sound sustainable,” he (democrat) said.”
Stupid is as democrat say.
Tax all tech companies/Amazon up to 80% :o)
Politics is always and only about power.
Well the problem is that no one wants cuts to their little pet budgets.
Trump would veto this without hesitation.
Of course they don’t have buyers remorse. The indoctrination has worked to a tee.
Democrat promise if I vote for them they bash me in head with hammer.
I vote democrat cause Orange Man bad.
Democrats bash me with hammer. This is bad.
I blame Orange Man. College teach me Orange Man always to blame. Orange Man Bad.
#1 - Tax increase legislation, as I understand it, must originate in the House. But it must also pass the Senate. Which I doubt any tax increase legislation would.
#2. - If the Senate were to loose their collective minds and pass the legislation on to President Trump, I think it’s highly unlikely President Trump would sign any law that would undo any of his recent accomplishments.
Exactly. But we could cut off all foreign aid to our enemies. Can’t a President just DO that? I mean, 0bama took the opposite tac and GAVE pallets of CASH to Iran with NO congressional approval!
What’s the difference? (Yes, I know...)
yeah WTH did i have to go so far to get your OBVIOUS answer?
Do people here want to BITCH so much that they conveniently forget how congress works?
Did the writer of the article want to cry so much that he forgot how it worked?
Trump should say NO to EVERYTHING the Dems want until he gets THE WALL FUNDED! NO NO NO NO NO until they get the gist of what this country needs the most.
DOA in the Senate. If it doesn’t die there, it faces a presidential veto.
Democrats can pass all the tax hikes they want. They are going nowhere.
That’s what I was thinking....how would this RAT corporate tax increase pass the Senate?
Evidently huh...
Infrastructure spending= slush funds for all the democrats crooked friends
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.