Big US corporations complain about Biden’s infrastructure plan

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  • US corporations privately express their disagreement with Biden’s infrastructure plan despite having criticized the current state of infrastructure
  • Corporate America mainly complains about the tax raise for them that is required to finance the massive $ 2 trillion plan
  • They claim that instead of creating jobs, many jobs will flee the United States

Entrepreneurs are against Biden’s plan. American companies have complained loudly for years about the dilapidated state of the country’s infrastructure and have demanded that Washington invest more in this area in order to reach the rest of the developed world.

But now that President Joe Biden has proposed a massive spending package of more than $ 2 trillion, Corporate America’s collective response is basically a “no thanks,” the portal Politician informed.

businessmen against Biden's plan
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Now they complain but in private

Groups like the Chamber of Commerce and the Business Roundtable have largely rejected the plan, saying the tax increases Biden proposes to pay would crush American competitiveness.

Senior executives in most companies who have made speeches about the need for infrastructure spending in the past remain silent in public, choosing to privately complain that Biden’s plan is too expensive, too partisan, too loaded. unrelated social policies and nothing they had in mind. However, Jeff Bezos, CEO of online retail giant Amazon, issued a statement Tuesday that at first glance seemed like an endorsement of Biden’s plan.

But it really wasn’t like that

Jeff Bezos, CEO of Amazon. Photo: Getty

Bezos, like other CEOs, nodded toward accepting a higher corporate tax rate, though he actually put his name behind it. He fell short of explicitly endorsing Biden’s infrastructure proposal, calling instead for a “balanced solution” to boost America’s competitiveness. Beneath the table, the corporate world despises Biden’s plan in its current form and is ready for it to fall apart.

“This plan would make America less competitive, which would mean lower US economic growth and less job creation,” said Neil Bradley, director of policy for the Chamber of Commerce. “The benefits of the infrastructure would be offset by increased punitive taxes. And if they move forward with just Democratic votes, the concept of doing anything on a bipartisan basis would end and only reinforce the kind of stalemate that has impeded progress on all other issues. ”

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They fear that the plan will destroy US jobs.

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Executives at some of America’s largest companies complain much more bitterly privately about the White House’s approach, arguing that raising the top corporate rate to 28 percent from 21 percent, without restoring the eliminated deductions in then-President Donald Trump’s 2017 tax cuts bill would affect hiring and the economy.

And they say that instituting a global minimum tax that other countries may not adopt would take more jobs and profits out of the United States, even though the White House says the plan will create jobs in construction. They also complain about the lack of sufficient outreach to the business community before the infrastructure plan was announced and worry that Biden is abandoning his campaign promise to work on a bipartisan basis on legislation they consider radical.

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25 percent rate, more manageable for entrepreneurs

businessmen against Biden's plan
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Executives often say they could handle a corporate tax rate of around 25 percent, which groups like the Business Roundtable previously supported, but only with deductions restored.

“I did not think that 21 percent was the correct number when we did the tax reform. And the 25 percent is a place where you could probably get consensus, “said the CEO of one of the world’s largest financial firms, on the condition that his name and that of his firm be identified. “It’s not the rate, it’s all the other things that would make us less competitive around the world. And the jobs will disappear if we do these things. ”

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Entrepreneurs reluctant to approve a plan that is not bipartisan

File / Getty

The CEO added that the business community will generally not back any bill that is pushed only with Democratic support through the budget reconciliation process, a maneuver that allows the legislation to pass the Senate with a simple majority, which the White House used. to approve its 1.9 billion stimulus plan for the pandemic.

“It really matters if this is totally partisan. It sounds cliché, but business people really want to sit in the middle and endorse things that have the support of both parties, ”said the CEO. “Biden made a lot of promises to do these things differently. But while it has a brighter veneer, much of it looks like Trump doing everything his way. ”

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It’s easy for Amazon to nod

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A leading executive at a Fortune 100 technology company said it’s easy for Amazon and other companies to nod at their willingness to pay a higher overall corporate rate. But the executive said the business world would fight much of the rest of the proposal.

“None of these guys can realistically and seriously oppose a 25 percent rate,” the executive said. “That’s not where the fight is. Absolutely”.

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Hasty arrangements

AP

Both executives say that outside of a couple of hastily arranged conference calls shortly before Biden presented his “American Job Plan,” there hasn’t been much outreach to the business community, a complaint that dogged former President Barack Obama during his two terms.

The White House largely rejects these complaints. Management officials note that many executives, including JPMorgan Chase CEO Jamie Dimon, previously backed a top corporate rate of 25 percent, just slightly below the 28 percent Biden is proposing.

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Biden has not been the only one with the proposal

businessmen against Biden's plan
Current Senator Mitt Romney. Photo: AP

They also say that 2012 Republican presidential candidate Mitt Romney ran on a platform that included a top rate of 25 percent and that Trump’s National Economic Council director Larry Kudlow mostly praised Romney’s plan.

On the pledge, administration officials say White House advisers Cedric Richmond, who heads the Office of Public Engagement, and Brian Deese, the director of the National Economic Council, met with the heads of Bank of America, State Street, Wells Fargo and Goldman Sachs to discuss infrastructure.

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The real dialogue is just beginning

businessmen against Biden's plan
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They also say Richmond and Deese briefed 25 executive members of the Business Roundtable. And other officials spoke with trade groups such as the National Manufacturers Association and the Aerospace Industries Association along with executives from major Internet broadband companies and agricultural representatives.

More broadly, White House officials say that while Biden is committed to covering much of the cost of the $ 2.5 trillion plan, he acknowledges that a conversation about exactly how to do it is just beginning.

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Eventual bipartisan agreement

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The White House still hopes to eventually craft a bipartisan agreement, even if all signs at this point suggest that Biden is willing to sign a bill with only Democratic support.

“We want to work across the board with briefings and discussions with Republican legislators,” said NEC Deputy Director David Kamin. “In regards to corporate tax reform, the president presented this and this is his idea of ​​how it could be paid, but he’s really open to hearing other ideas.”

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Pressure from the Secretary of the Treasury

businessmen against Biden's plan
The Secretary of the Treasury, Janet Yellen. Photo: Getty.

Kamin added that “if others have ideas they want to present, then those should be part of the discussion.”

Perhaps the biggest fear of American companies at the moment centers on the idea of ​​a minimum tax of 21 percent on foreign income from American companies, something that, according to conservative executives and economists, would put American companies in a difficult position. clear disadvantage and could lead US companies to once again seek “Investments” in which they take overseas directions.

Treasury Secretary Janet Yellen on Monday pressed developed countries to adopt a global minimum tax as a way to reduce potential anti-competitive downsides that could arise from Biden’s proposal.

Filed Under: Entrepreneurs Against Biden’s Plan

The post Large US corporations complain about Biden’s infrastructure plan appeared first on Hispanic World.

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