West Virginia Sen. Joe Manchin (D) announced he opposes President Joe Biden’s plan to raise the corporate tax rate to 28 percent as part of his latest infrastructure bill.
“As the bill exists today, it needs to be changed,” Manchin said. “It’s more than just me.”
Manchin added, “There’s six or seven other Democrats who feel very strongly about this. We have to be competitive, and we’re not going to throw caution to the wind.”
The senator noted the bill would not succeed without his support. The 50-50 deadlocked Senate that includes a vice-presidential tiebreaker requires all 50 Democrats in support to advance legislation.
Several Democrat House members wrote a letter on Apr. 1 to Secretary of State Janet Yellen to note they would not support the infrastructure bill without removing caps on state and local tax deductions.
“Millions of Americans, already reeling from the economic consequences of the pandemic, will now be hit by a significant increase in federal taxes compared to what they faced before the deduction cap was introduced,” the letter noted.
“As our economy recovers from this public health and economic crisis, it is critical that we provide our constituents and state and local governments with the relief that they desperately need,” the House members added.
Biden announced his $2 trillion infrastructure plan on Wednesday in Pittsburgh, Pennsylvania. The plan’s funding will comes from raising the corporate tax rate lowered by former President Donald Trump’s Tax Cuts and Jobs Act in 2017.
The current infrastructure bill will unlikely proceed. However, the legislation will undergo modifications and continue, similar to Biden’s previous $1.9 trillion COVID-19 stimulus bill.