Biden Backs Off Corporate Tax Increases, Opens to Disruption Change
Baltimore, Oct. 22 (BNA): US President Joe Biden has backed away from tax increases he pledged to fund planned infrastructure and social spending, and also said he is open to reforming Senate voting rights by “dramatically changing” his stalling habits.
At a large-scale town hall for CNN in Baltimore, Biden said he was close to striking a deal to pass key spending measures after weeks of intra-party bickering among his fellow Democrats, Reuters reports.
However, he said raising corporate tax rates, one of his most frequently cited promises, is unlikely to be part of the legislation. Biden said proposing a separate corporate tax floor could fund social programs that are at the heart of his domestic agenda.
When asked about voting rights, Biden expressed support for changing the suspended Senate tradition, which requires 60 US senators to agree on most legislation. This obstacle has left the Democratic Party powerless on key social issues given its narrow majority. Biden added that it was “not yet clear” whether he intended to eliminate the disruption entirely.
Taxes have been a central issue in Biden’s social spending plan, which has been the subject of fierce debate on Capitol Hill and in the White House as negotiators search for the sweet spot between progressives desiring a host of new programs and moderates wary of cost.
The tax settlement could help sell the plan to Senator Kirsten Senema, who expressed concern about Biden’s plan to increase corporate taxes after the Trump administration cut it from 35% to 21% in 2017.
Cinema and Senator Joe Manchin, both moderate Democrats, have been pushing for a smaller package and have opposed some elements of the bill.
Biden said negotiations now revolve around four or five issues. He later said the Clean Energy Performance Plan had not been dropped, adding that Sinema was “very supportive” of his environmental agenda.
Biden made a confident note on the $1 trillion bipartisan infrastructure deal and separate social spending plan expected to cost less than $2 trillion.
When asked if Democrats are close to a deal, Biden said: “I think so.” He later added, “If we can’t finally unite this country, we’re in deep trouble…I think I’ll get a deal.”
When asked by CNN’s Anderson Cooper if he would consider a “radical change” in the disruption to ensure voting rights reform was passed, Biden said, “And perhaps more.”
Biden has spent 36 years in the Senate and had previously said he opposes changes to the disruption tradition, but earlier this month he said he was open to a one-time change when he faced the risk of the federal government defaulting on its debt.
Some Senate Democrats this year suggested changing the rule in the face of Republican opposition in the narrowly divided chamber.
“Their agenda now is just to stop Biden,” the president said.
On the spending bill, Biden said he could use tax incentives instead of proposing the electric grid to reach climate goals. Biden added that Manchin is open to such incentives.
Biden said it “would be easy to reach” until his spending bill includes provisions that help with hearing, dental, and vision aids all together.
Pressed about the importance of education, Biden said he still expects a free community college, which was removed from the spending package, in the next several years.
Cooper asked the president about the reaction of his wife, community college professor Jill Biden, to the measure that was dropped from his Social Spending Initiative.
“Well, the White House has a lot of bedrooms,” Biden joked.