Biden's new $1 trillion infrastructure offer reportedly swaps in 15 percent minimum corporate tax for tax hike

Sen. Shelly Moore Capito
(Image credit: Chip Somodevilla/Getty Images)

President Biden didn't just lower the proposed price tag for his American Jobs Plan to $1 trillion, from $1.7 trillion, in a Wednesday meeting with Sen. Shelley Moore Capito (R-W.Va.), the GOP point person on infrastructure negotiations. He also said he's open to dropping his proposal to fund the bill by raising the corporate tax rate to 28 percent, from 21 percent, The Wall Street Journal and The Washington Post report, citing people familiar with the talks. Instead, the package would create a new 15 percent minimum corporate tax rate.

Republicans insist any bipartisan infrastructure bill not touch their 2017 $1.5 trillion tax cut package, their crowning legislative achievement of the past decade. A 15 percent minimum tax wouldn't technically change that 2017 law, and according to a White House document from earlier this year, only about 180 of the largest U.S. corporations would qualify for the minimum tax and just 45 would have to pay, the Journal reports.

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Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.