The Biden administration is appealing for the business community to be open to discuss higher corporate tax rates as part of the an infrastructure overhaul.
Watch in the video player above.
President Joe Biden last week proposed a $2.3 trillion infrastructure plan that would largely be funded by an increase in the corporate tax rate to 28 percent and an expanded global minimum tax set at 21 percent.
Commerce Secretary Gina Raimondo said Wednesday that businesses and lawmakers should come to the bargaining table, noting that there could be room to negotiate on the rate and timeline.
“There is room for compromise,” Raimondo said at the White House briefing. “What we cannot do, and what I am imploring the business community not to do, is to say, ‘We don’t like 28. We’re walking away. We’re not discussing.'”
Key to the Biden administration’s pitch is bringing corporate tax revenues closer to their historic levels, rather than hiking them to new highs that could make U.S. businesses less competitive globally.
Trump’s 2017 tax cuts halved corporate tax revenues to 1 percent of gross domestic product, which is a measure of the total income in the economy. Revenues had previously equaled 2 percent of GDP. That higher figure is still below the 3 percent average of peer nations in the Organization for Economic Co-operation and Development, the Treasury Department said in its summary of the plan.
During the White House briefing Wednesday, press secretary Jen Psaki said the Biden administration would like to see progress on the infrastructure plan by Memorial Day.
Psaki also said southern border “wall construction remains paused,” as the review continues on how funds were allocated.