Biden Cuts $700 Billion From Infrastructure Demands But "Where From" Is A Mystery

Offers and Counteroffers What's in Them

Biden initially sought $2.4 trillion for infrastructure. Then it was $1.7 trillion. Now, supposedly it is $1 trillion. 

The WSJ reports Biden Floats New Infrastructure Spending Offer of $1 Trillion

During a Wednesday meeting with Sen. Shelley Moore Capito (R., W.Va.), Mr. Biden put forward the $1 trillion proposal, down from $1.7 trillion previously, and outlined options to pay for the spending that wouldn’t boost the corporate tax rate to 28% from 21%, as he previously proposed. Republicans have called any effort to boost the corporate tax rate or unwind the Republicans’ 2017 tax law a nonstarter.

“This should be completely acceptable to a number of Republicans who have said their bottom line is they want to leave the 2017 tax law untouched,” White House press secretary Jen Psaki said Thursday. “We’re also going to keep options open and keep a range of paths open,” she said.

Under one of Mr. Biden’s suggestions, the biggest companies would pay a minimum corporate tax of 15%, according to people briefed on the matter. Unlike Mr. Biden’s proposed corporate tax-rate increase or changes to taxes on U.S. companies’ foreign income, the minimum tax wouldn’t directly reverse the 2017 law, passed by Republicans with no Democratic support. That law reduced tax bills for most families and businesses, eliminated some breaks and dropped the corporate tax rate to 21% from 35%.

But the minimum corporate tax, already proposed by Mr. Biden as part of his broader agenda, would have some of the same effects by clawing back various tax breaks.

GOP Mulls Throwing Biden More Infrastructure Money

Politico reports GOP Mulls Throwing Biden More Infrastructure Money

Sen. Shelley Moore Capito (R-W.Va.), her party's lead infrastructure negotiator, is preparing to come back to the table with Biden tomorrow in the latest round of high-stakes talks that have frozen the White House's initial $4 trillion proposal on Capitol Hill. The gap between the two sides is massive at the moment — Biden and Republicans aren’t even counting the size of the bill the same way and are approximately $750 billion apart. Their differences appear nearly impossible to bridge right now, according to two GOP sources familiar with the negotiations.

Sen. Ben Cardin (D-Md.) said on Thursday that his party would give the GOP about 10 days before making moves toward passing a package using budget reconciliation, an arcane process that allows certain spending bills to evade the Senate’s 60-vote requirement. Cardin described Democrats’ strategy as “going as far as we can with Republicans and not delay[ing] it beyond this work period without seeing some action.”

Republicans are skeptical they can muster the willingness to come up significantly from their current offer of about $250 billion in new money over current spending levels on roads, bridges and other infrastructure. Biden wants at least $1 trillion over current levels — a concession from his initial proposal of more than $2 trillion in new infrastructure spending, but a pitch that Republicans still view as a “major backslide” in negotiations, one GOP source said.

During a meeting at the White House on Wednesday, Biden presented a new offer to Capito about how the package could be paid for. Instead of raising corporate tax rates from 21 percent to 28 percent, Biden proposed that negotiators could impose a new corporate version of the alternative minimum tax, set at 15 percent.

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