Centrist Sen. Joe ManchinJoe ManchinGOP senator hammers Biden proposal to raise corporate tax rate The filibuster can be conquered: I know — I helped do it Lawmakers say fixing border crisis is Biden’s job MORE (D-W.Va.), who has emerged as a powerbroker in the 50-50 Senate, says President BidenJoe BidenBiden should look to ‘Ostpolitik’ to negotiate with autocrats The Hill’s Morning Report – Biden’s infrastructure plan triggers definition debate The Memo: Biden’s bet on taxes MORE’s $2.25 trillion infrastructure proposal needs changes and raising the corporate tax rate to 28 percent goes too far.
Manchin said Monday he would instead support raising the corporate tax rate to 25 percent, a level he identified last month as something he could back.
“As the bill exists today, it needs to be changed,” Manchin told Hoppy Kercheval, the host of West Virginia Metro News’s “Talkline” show.
“If I don’t vote to get on it, it’s not going anywhere,” he added.
The West Virginia maverick said other Senate Democrats are also concerned about Biden’s proposal to raise the corporate tax rate from 21 percent to 28 percent.
“It’s more than just me, Hoppy,” Manchin added. “There’s six or seven other Democrats who feel very strongly about this. We have to be competitive, and we’re not going to throw caution to the wind.”
Manchin had previously signaled opposition to raising the corporate rate to 28 percent when he spoke to reporters before the Senate left town for the two-week Easter recess.
“There are other things we can change, too,” he said on March 24.
He said raising the corporate tax rate to 25 percent would raise about $400 billion over 10 years.
“I think we should be paying for anything that adds to the debt,” he said two weeks ago. “I think the corporate tax should have never gone below 25 percent.”
Manchin’s support is critical to Biden’s infrastructure plan because Senate Republican aides predict there won’t be a single GOP vote for the proposal in the upper chamber.
Critics of raising the corporate tax rate say the costs will be passed on to consumers and workers as companies will look for ways to keep profits from sinking.
Matthew Dickerson, director of the Heritage Foundation’s Grover Hermann Center for the Federal Budget, said, “going to a 28 percent rate when combined with state corporate tax rates puts us right back in the really dubious position of once again having the highest taxes on business in the entire” Organization for Economic Cooperation and Development.
“A review of the economic literature of who bears the brunt of corporate taxes shows the majority of that is born by labor,” he said.