For the past week, President Joe Biden, members of his administration, and Democratic leaders in Congress, such as House Speaker Nancy Pelosi (D-CA), have touted their optimism about an upcoming infrastructure bill that includes a massive, potentially record-setting tax hikes in order to fund the lofty initiative.
However, according to Breitbart, Sen. Joe Manchin (D-WV) — a moderate Democrat with elevated power at the moment, given the 50-50 Senate split — indicated that he and a handful of his colleagues will not support the new bill because they oppose raising the corporate tax rate to the 28% target that Biden is shooting for.
“Senator Joe Manchin just said Democrats do not have the votes to pass the American Jobs Plan in the U.S. Senate. Manchin says he knows of 6 or 7 Democrats who agree hiking the corporate tax rate to 28% would put the country’s competitiveness at risk,” Fox Business reporter Ed Lawrence indicated on Monday.
Many, including former President Donald Trump, have argued that raising the corporate tax rate from its current level of 21% to Biden’s targeted 28% rate will be nothing less than devastating for American businesses and, like what happened in other administrations, will drive American corporations back out of the country.
Republicans are also focusing on another glaring issue with Biden and Pelosi’s infrastructure bill, in that only roughly six percent of the $2.25 trillion bill will actually go toward funding infrastructure, in the sense of building roads and bridges.
“Biden’s plan includes the largest tax hike in nearly three decades, but of course, coastal elites will have their taxes slashed. It will strip Americans of their right to work by forcing them to join Democrat-backed unions,” said Sen. Marsh Blackburn (R-TN).
“When you raise taxes … companies start moving their jobs overseas again, like they were doing when we had high taxes a few years ago. That means we lose middle class jobs,” House Minority Whip Steve Scalise (R-LA) added.
Since the Senate is currently split 50-50 between parties, Democrats can’t afford to lose even a single vote, even if they use the budget reconciliation method of cramming the bill through, which would only require a simple majority for it to pass. With reports of Manchin and possibly up to six other Democrats defecting, Biden’s big play could already be dead in the water.
Thankfully, there are senators like Manchin who can put party politics aside and take a sthttps://mainstreetgazette.com/547231-2/ep back to determine how a bill of such magnitude could affect Americans and the economy. It appears that at this point, if Biden and Pelosi want this bill to pass, it’s going to require a significant overhaul.