Biden desires the Republican Capito to extend the counter provide

United States President Joe Biden will address the Middle East in the Cross Hall of the White House in Washington DC on May 20, 2021.

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President Joe Biden wants Republicans to increase spending on their infrastructure plan ahead of Friday’s talks that will determine whether Washington can pass bipartisan law to modernize transportation, broadband and water systems.

During a meeting on Wednesday, Biden told GOP Senator Shelley Moore Capito that he wanted the plan to include $ 1 trillion in new spending – or above the baseline set under the existing policy, NBC News reported. While Republicans recently sent Biden a counteroffer totaling $ 928 billion, it contained only about $ 250 billion in new money.

Biden offered Republicans possible alternatives to his proposal to raise the corporate tax rate to at least 25%. The GOP opposes any change to its 2017 Tax Act, which cut corporate tax from 35% to 21%.

He suggested relying on a minimum 15% tax to curb underpayment by profitable American companies, a source told CNBC. Despite the offer, Biden is not abandoning its ongoing plans to raise the corporate tax rate or raise taxes for wealthy individuals.

The White House later hinted at the political rationale behind the recent moves. Rejecting a minimum tax rate would mean “believing that these 50 tax-free companies shouldn’t pay taxes at all,” said spokesman Jen Psaki on Thursday.

Psaki also said Biden would not support user fees to pay for its infrastructure plans, which the government believes equates to a tax increase for those earning less than $ 400,000 a year.

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Capito, a Republican from West Virginia, shared the details of the meeting with five other Republican senators on her infrastructure negotiation team, NBC reported. The GOP expects to send Biden another counter offer on Friday, the day Biden and Capito want to speak again.

A Capito spokeswoman did not immediately respond to a request to comment on Biden’s proposed alternative to increasing the corporate tax rate.

Biden’s priorities outlined on Wednesday underscore the hurdles negotiators face on the way to a bipartisan deal. Despite weeks of maneuvers, the parties have not agreed on what should be included in an infrastructure draft or how the plan should be financed.

The White House has signaled that it could go ahead and try to pass laws only with democratic votes if talks don’t make progress by next week. Energy Secretary Jennifer Granholm told CNBC on Wednesday that the negotiations were “limited in time”.

However, neither Democrats nor Republicans have shown that they want to be the ones to leave the talks.

Senate minority leader Mitch McConnell, R-Ky., Doesn’t know “whether we will get an agreement or not,” but hopes “we will get a result,” he told reporters in his home state on Thursday. He said he expected the Democrats to try to pass a law on their own if they fail to reach an agreement with the GOP, but “that will be extremely controversial because of the taxes they are trying to collect”.

“My advice to the president and the government: let’s reach an agreement on a smaller, but still significant, infrastructure that will be fully paid for,” he said.

The GOP’s $ 928 billion plan was roughly half of Biden’s latest $ 1.7 trillion proposal. Democrats want a bill to go beyond previous notions of infrastructure, but Republicans have been reluctant to include policies on transport, broadband, and utilities.

The White House package includes major investments in caring for the elderly and disabled, in homes, schools, electric vehicles, and clean energy. Democrats have emphasized the need to stimulate the economy over the long term by making it easier for workers to find care for dependent family members and by preparing buildings and critical infrastructure to deal with the effects of climate change.

Republicans intend to limit a plan to investments in areas such as roads, bridges, airports, ports, waterways, broadband and water systems.

Agreeing on how to offset expenses could prove just as difficult as deciding what to include on the bill. The Republicans have announced that they will not agree to an increase in corporate taxes. Biden wants to raise the rate to at least 25%.

The White House rejects a proposal by the GOP to reuse the coronavirus aid money passed by the Democrats earlier this year.

– CNBC’s Ylan Mui contributed to this report

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