(Bloomberg) US president Joe Biden is facing opposition even from his Democratic allies over ambition to fulfill his campaign promise of raising tax rates.
Biden says there are not enough votes to raise Trump’s 21% corporate tax, which was passed in 2017 and lowered the corporate rate from the initial 35%.
Trump’s law also lowered the tax rate for the wealthy Americans to 37% and other changes cut net tax to $1.5 trillion over a decade.
Republicans say Trump’s tax cuts made the country more competitive. Critics are still adamant that it did not generate sufficient investment and growth.
The rate hike challenge is a blow to Biden, who had promised a tax overhaul on the first day of assuming the white house.
Eyes are now turning on how the Democrats will finance the almost $2 trillion social spending package set to be released later this week. Democrats do not expect another large bill before next year’s midterm elections.
Negotiations for new revenue provisions are reportedly being examined, with options on how corporations and the wealthy will pay a fair share of their tax. The spending package is not expected to add to the country’s debt.
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