Recently, Joe Biden’s office released his next spending bill. Trying to sell it as an “infrastructure” plan, the bill would cost the U.S. taxpayer over $2 trillion. But that’s great right? Because the money will be spent on our infrastructure? Not quite.
Only a fraction of the money will actually go to our roads, bridges, and other vital construction needs. The vast majority of your money will be given directly to “green” companies. Massive subsidies will be given to electric vehicle makers, green tech startups, and other companies that have little to do with infrastructure.
Even climate policy experts bemoaned the plan, saying the money shouldn’t be given to companies already receiving numerous perks from the government.
A big question, of course, is how will the government pay for all this? After a historic tax cut in 2017, Biden wants to raise taxes through the roof. That includes an insane corporate tax rate of 28%–which is sure to drive companies overseas.
Now, a moderate Democrat in the Senate is saying, “No way.”
Sen. Joe Manchin has indicated that he does not support the infrastructure proposal in its current form.
“As the bill exists today it needs to be changed,” the West Virginia Democrat said during an interview with Talkline host Hoppy Kercheval.
The infrastructure proposal would boost the corporate tax rate from its present rate of 21% up to 28%.
Manchin said that he does not think the corporate tax rate should have been under 25%, which he said is “the worldwide average. And that’s basically what every corporation would’ve told you that’s what they thought was fair.” He said that he believes the rate should be 25%. [Source: Just the News]
Although there are many “poison pills” in this proposal, it seems Manchin takes exception to Biden’s corporate tax hike. You’d think the West Virginia senator would be more concerned with how this bill would impact families back home? But at least he is willing to call out one problem with Biden’s plan.
A high corporate tax rate is bad for everyone. It should be as low as possible, considering corporations make up a large portion of companies that employ Americans. The lower their tax rate, the more money they can spend on improving their goods and services, while hiring more staff and increasing wages.
We all know what would happen if we raised the tax rate from 21% to 28%. Big companies, who came back to the U.S. under Trump, would quickly leave. Many nations have a tax rate much lower than America. It would be nothing for a big company to move their offices (and white-collar jobs) to greener pastures.
Now, why would Biden impose a tax hike like this, knowing it would lead to lost jobs? I can’t say for sure.
Biden claims to want to help Americans through the pandemic. But all his decisions so far have only made things worse. Raising taxes now would be a disaster for working-class and middle-class families.
At least there is one Democrat willing to oppose such a move. For now.
Author: Kevin Farlin