Stocks Jump After Biden Signals ‘Major Changes’ To Tax Proposal To Win GOP Support
It appears the Biden administration has realized their ambitious tax hikes have a snowball’s chance in hell of passing, given the slim majority Democrats hold in both chambers of Congress – which include two serious moderates (Manchin and Sinema) and a parliamentarian who won’t let them get away with forcing legislation through via reconciliation (a simple majority).
Now, according to the Washington Post, Biden has outlined a $1 trillion plan financed through tax changes which would not focus on raising the top corporate rate – a major concession to Republicans who opposed an earlier proposal to raise the corporate tax rate from 21% to 28%.
Instead, Biden on Wednesday recommended a new, minimum corporate tax of 15 percent, seeking to take aim at dozens of profitable U.S. corporations that pay little to nothing to the federal government annually, according to a person familiar with the talks who requested anonymity to describe them. The White House also proposed stepping up enforcement on corporations and wealthy earners who rely on loopholes to lessen their tax burdens, the person said.
The offer marked an attempt by the White House to avert the “red line” that Republicans laid down earlier in negotiations over infrastructure reform, though the source maintained that Biden has not strayed in his overall belief in raising rates on both corporations and wealthy individual earners. The president presented his plan, a revision of his total $2.2 trillion American Jobs Plan, during a meeting Wednesday with the GOP’s chief negotiator on infrastructure, Sen. Shelley Moore Capito (R-W.Va.). -WaPo
The news immediately sent markets higher:
Developing…
Tyler Durden
Thu, 06/03/2021 – 11:04
via ZeroHedge News https://ift.tt/3z23IyI Tyler Durden