United States (US) President Joe Biden says a corporate tax rate of between 25% and 28% could help build much -needed infrastructure in the country.
Biden had previously, through his US $ 2.3 trillion infrastructure plan, proposed raising the corporate tax rate from 21% to 28%.
According to tax experts last month, a tax rate of 25% is likely to be very reasonable.
Former President Donald Trump previously acted to lower the corporate tax rate to 21% from 35% yet many large companies did not pay the amount they were supposed to.
Following that, Biden wanted to increase the tax rate on companies as part of his plan to restructure the U.S. economy to reduce inequality and work against Chinese influence.
“The way I pay for this (infrastructure), is to make sure big companies pay taxes and reduce tax deductions by between 25 and 28%,” Biden said during his visit to Lake Charles, Louisiana.
Biden's visit to Louisiana, which has often supported Republican presidential candidates for the past 20 years, is part of a 'Getting America Back on Track Tour' campaign to promote a $ 2.25 trillion infrastructure spending plan and a $ 1.8 billion education and childcare proposal.
Biden’s desire to develop schools, roads, job training and other public works as well as impose taxes on the rich and companies, has been well received by voters of both parties in the past.
However, his plan received strong opposition from Republicans.
Republican Congressmen opposed Biden's proposed $ 2.25 trillion infrastructure plan for more than a decade on the grounds that high taxes imposed on large corporations would hurt jobs and weaken the economy.
The U.S. economy grew during the implementation of high taxes imposed on large companies as happened in the 1960s and 1990s.
