Treasury Secretary Janet Yellen sought to muster business support for the Biden administration’s package of infrastructure investments and corporate tax increases, arguing that it would put U.S. companies on a better footing to compete overseas.
“We are confident that the investments and tax proposals in the jobs plan, taken as a package, will enhance the net profitability of our corporations and improve their global competitiveness,” Ms. Yellen said Tuesday at a U.S. Chamber of Commerce event. “We hope that business leaders will see it this way and support the jobs plan.”
President Biden has called for a $2.3 trillion infrastructure plan centered on fixing roads and bridges, expanding broadband internet access and boosting funding for research and development. To help pay for it, he has proposed raising the corporate tax rate to 28% from 21% and raising taxes on U.S. companies’ foreign earnings.
“We believe the corporate sector can contribute to this effort by bearing its fair share,” Ms. Yellen said. “At the same time, we want to eliminate incentives that reward corporations for moving their operations overseas and shifting profits to low-tax countries.”
Administration officials have been lobbying business leaders to back the infrastructure plan, saying investments in things like job training and roads would benefit companies. Republicans in Congress have said they could support a narrower plan in the range of $600 billion to $800 billion but have rejected the president’s proposal to pay for it by raising corporate taxes.
