As President Joe Biden announced his $2 trillion plan to invest in American infrastructure, he claimed that the program’s costs would be covered by undoing the corporate tax cuts America saw underneath former President Donald Trump. This has sparked a great deal of conversation for the onset of tax season, so it may be worth remembering that Gary Cohn, Trump’s former White House National Economic Council Director and CEO of Goldman Sachs, has expressed the opinion that tax cuts went too far during the Trump administration.
Biden held a press event on Wednesday to outline how the American Jobs Plan would focus on roads and bridges over the next 8 years, but also a number of broader expansions for infrastructure and economics. He argued that the program would be affordable if corporate tax rates were raised to 28 percent, but he also condemned corporations for exploiting tax loopholes and said the Trump administration only helped the wealthy by lowering the rate to 21 percent with the tax cut of 2017.
“I’m sick and tired of ordinary people being fleeced,” Biden said. “It’s not fair to the rest of the American taxpayers. We’re going to try to put an end to this.”
“I’m actually okay at 28%. The level we got to in our tax plan on the corporate side was actually a bit lower than we needed to go… I always thought that a compromise rate in the mid 20’s made sense.”
–GARY COHN, Trump’s tax/econ advisor on a 28% corporate tax rate 6/25/20 pic.twitter.com/4VC7RME8TJ
— Will Ragland (@citizenwillis) April 7, 2021
There’s a high probability that Democrats and Republicans will argue about whether the package is too expansive and what is the appropriate corporate tax rate. In the meantime, one might care to remember that Cohn gave an interview to Yahoo Finance’s Adam Shapiro where he defended the Trump-era tax cuts by arguing that they stimulated the economy, but he would back Biden’s proposals to bring corporate taxes up.
I’m actually okay at 28 percent. The level we got to in our tax plan on the corporate side was actually a bit lower than I thought we needed to go. We had come down from 35 percent. Getting down in the low 20s was probably lower than what we needed to go. I always thought there was a compromise rate sort of in the mid 20s that made sense. I’ll remind everyone, though, that the corporate tax rate is not where we collect a lot of dollars. So the difference between going from 35 percent to 21 percent was less than $100 billion a year. We don’t collect a lot of money in the corporate tax rate… If we go to 28 percent, that’s probably the top end of the range that we can go to and be competitive with the rest of the world. It’s at the outer bounds of my limit of acceptability. I could live with 28 percent.
Watch above, via Yahoo Finance.
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