U.S. business groups say they are excited about President Joe Biden’s mega-investment plan to improve infrastructure, but they will lobby against a corporate tax increase to fund the needs.
The U.S. Chamber of Commerce, the Business Roundtable and other corporate lobbying groups said they strongly oppose raising the corporate tax rate from the current 21 percent to 28 percent to finance the $2.25 trillion infrastructure plan proposed by Biden on Wednesday (31). They advocate improving the infrastructure funding model, which should be a “user pays” model.
Neil Bradley, executive vice president and policy director of the U.S. Chamber of Commerce, said: “We strongly oppose the Administration’s proposed broad-based tax increase. Such a proposal would slow the economic recovery, weaken the global competitiveness of U.S. businesses and have the exact opposite effect of what the infrastructure plan is intended to achieve.”
According to sources familiar with the Chamber’s response, the Chamber will urge member companies to make their case directly to their representatives, providing examples of how the legislative process would affect business operations if corporate taxes were raised, such as the possibility of not being able to open new manufacturing facilities.
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