Biden, GOP haggle over how to pay for infrastructure

President Joe Biden is fine with leaving the corporate tax rate alone as long as he knows no corporation will pay less than 15 percent of its profits in taxes. Because of write offs and deductions, businesses often have a functional rate much lower than the existing corporate tax of 21 percent. The president proposed a 15 percent minimum as a way to pay for a massive infrastructure spending bill, but Republicans rejected it as a de facto tax hike.

What now? Democrats have permission from the U.S. Senate parliamentarian to pass their infrastructure plan with only 50 yeas plus Vice President Kamala Harris’ tie-breaking vote. Senate rules require 60 votes—which Democrats don’t have—to break a filibuster and bring legislation to the floor, except in certain spending situations like this one. Transportation Secretary Pete Buttigieg has indicated that Biden might act without Republican support if the two sides cannot reach an agreement by the time Congress returns next week from its Memorial Day break.

Dig deeper: Read Harvest Prude’s report in The Stew on the use—and abuse—of the budget reconciliation process.