March 23, 2021
2 mins read

‘Biden admin mulls corporate tax hike’

The treasury secretary noted that the 1.9-trillion-dollar Covid-19 relief package recently rolled out has been deficit-funded…reports Asian Lite News

US President Joe Biden is considering an increase in the corporate income tax rate, as one of the tax proposals to offset the cost of the upcoming long-term investment plans, Treasury Secretary Janet Yellen said.

“I think a package that consists of investment in people, investments in infrastructure, will help to create the jobs in the American economy and changes to the tax structure will help to pay for those programs,” Yellen said at a hearing before the House Financial Services Committee on Tuesday, Xinhua news agency reported.

The treasury secretary noted that the 1.9-trillion-dollar Covid-19 relief package recently rolled out has been deficit-funded. “The stimulus package, the American Rescue Plan was not funded with any increase in taxes,” she said, adding that a longer-term plan probably would be accompanied with some revenue increases.

The current crisis is due to the pandemic, Yellen said. “But, once the economy is strong again, we are beyond the pandemic, President Biden is likely to propose that we engage in long-term plans to address long-standing investment shortfalls in our economy.”

She noted that investments in infrastructure, climate change, people, research and development, as well as manufacturing will make US economy more productive.

Also read:Putin invites Biden to virtual talks

“This will be spending over a 10-year horizon and would require some additional funding,” she told lawmakers.

One of the tax proposals Biden would consider is to increase corporate income tax rate back to 28 per cent, Yellen said, noting that the current US corporate income tax is among the lowest in developed countries.

US President Joe Biden

An increase in corporate income tax, if enacted, would mark a reversal of policy from the Donald Trump administration. In late 2017, the Republican-controlled Congress passed a President Trump-advocated tax reform bill, which slashed the corporate income tax from 35 per cent to 21 per cent.

At the congressional hearing, some Republican lawmakers, including Representative Ann Wagner from Missouri, cautioned against raising taxes.

“We know that raising the corporate tax rates results in higher costs for small businesses, schools and American households,” Wagner said.

“Why is this country beginning to reopen and recover economically with the Biden administration preparing tax policy which would in the end hurt the American family and millions of struggling small businesses?” she continued.

Yellen, however, told lawmakers that the impact of the changes in corporate taxes have been studied for a long time, and the impact on prices and on consumers are “very unclear” from existing studies.

Also read:US Defence Secy visits Ghani

Previous Story

‘ Basu is a naughty kid on the set’

Next Story

No Holi celebrations in public places

Latest from -Top News

UNSC Grills Pakistan Over Pahalgam Attack

Though Pakistan claimed that the meeting largely served and achieved the objectives of the UNSC’s meeting, reports showed that it flopped miserably…reports Asian Lite News The United Nations Security Council (UNSC) reportedly

Pakistan’s Terror Link “No Secret”: Bilawal Bhutto

Zardari stated that Pakistan’s intelligence services have since changed course and no longer collaborate with extremist elements..reports Asian Lite News Bilawal Bhutto Zardari, former Foreign Minister of Pakistan, has openly acknowledged Pakistan’s

Arab League Slams Sudan Strikes

The condemnation followed the Sudanese army’s announcement on Sunday that RSF drones had targeted a military airbase..reports Asian Lite News The Arab League (AL) condemned reported drone attacks by the paramilitary Rapid

Islamists Rise Under Yunus Rule

After the departure of former Prime Minister Sheikh Hasina in August 2024, Islamic parties in Bangladesh, crushed for years by the Awami League government, have made inroads into the political arena…writes Baidya
Go toTop

Don't Miss

EU, US agree to end trade disputes

The EU and the US agreed on a truce in

Turks Slam U.S. bio-labs

US bio-labs are across the world. 336 such laboratories in