Tax Increases to Outweigh Benefits of Biden Infrastructure Plan, Experts Warn

President Joe Biden has unveiled his ambitious infrastructure package, which proposes substantial tax increases on U.S. corporations to pay for the $2 trillion price tag.

The eight-year infrastructure plan will be fully paid for by tax increases on U.S. companies spread over 15 years.

Increasing the federal corporate tax rate to 28 percent from 21 percent is one of the several ways proposed in Biden's infrastructure plan.

The administration has to make the case for tax increases as "The benefits of the Biden infrastructure plan won't outweigh the cost to the economy of the tax increases," Scott Hodge, president of the conservative-leaning think tank Tax Foundation, said in a report.

Increasing the corporate tax rate to 28 percent would raise the U.S. federal-state combined tax rate to 32.34 percent, according to the Tax Foundation.

The infrastructure plan imposes a 15 percent minimum tax on large corporations' book income to ensure that large companies such as Amazon don't avoid paying U.S. federal taxes.

The tax-code overhaul of 2017 reduced corporate tax receipts by about 0.1 percent of gross domestic product, he said, but Biden's infrastructure plan raises them by six times as much to 0.6 percent of GDP. Business groups, including the U.S. Chamber of Commerce, applauded the Biden administration for making infrastructure investment a priority but strongly opposes the tax increases.

https://www.theepochtimes.com/tax-increases-to-outweigh-benefits-of-biden-infrastructure-plan-warn-experts_3759198.html