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


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.
"Corporations have paid a declining share in federal taxes since the 2017 GOP tax law dramatically slashed the corporate tax rate," the Post reports, and 55 Fortune 500 corporations paid no federal income tax in 2020, according to the left-leaning Institute of Taxation and Economic Policy. Biden's minimum tax proposal was originally part of a second package, the American Families Plan, and the White House says Biden is still committed to raising the corporate tax rate through other legislation, if need be.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The latest GOP offer is $257 billion in new infrastructure spending over eight years, plus clawed-back COVID-19 relief funds and increased user fees and gas taxes. Biden reportedly offered to include about $75 billion in repurposed coronavirus funds in the package. Biden and Capito are scheduled to talk again on Friday, and "Republican leaders are still deciding whether to put forward another counteroffer or to walk away from the negotiations entirely," the Post reports.
Progressive groups, convinced Republicans will ultimately vote against any package and frustrated at the slow pace and concessions by Biden, hope Republicans walk away, letting Democrats pass their own bill through budget reconciliation. "We are rooting for them to be dumb," one top consultant to several progressive groups tells Politico. "If they were smart they would take it. They'd box Biden in on it. And, not just that, he would legitimately be fine with it. And the left would be livid."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
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.
-
September 14 editorial cartoons
Cartoons Sunday’s political cartoons include RFK Jr on the hook, the destruction of discourse, and more
-
Air strikes in the Caribbean: Trump’s murky narco-war
Talking Point Drug cartels ‘don’t follow Marquess of Queensberry Rules’, but US military air strikes on speedboats rely on strained interpretation of ‘invasion’
-
Crossword: September 14, 2025
The Week's daily crossword puzzle
-
Why does Donald Trump keep showing up at major sporting events?
Today's Big Question Trump has appeared at the Super Bowl, the Daytona 500 and other events
-
House posts lewd Epstein note attributed to Trump
Speed Read The estate of Jeffrey Epstein turned over the infamous 2003 birthday note from President Donald Trump
-
Supreme Court allows 'roving' race-tied ICE raids
Speed Read The court paused a federal judge's order barring agents from detaining suspected undocumented immigrants in LA based on race
-
South Korea to fetch workers detained in Georgia raid
Speed Read More than 300 South Korean workers detained in an immigration raid at a Hyundai plant will be released
-
Why are Trump's health rumors about more than just presidential fitness?
TODAY'S BIG QUESTION Extended absences and unexplained bruises have raised concerns about both his well-being and his administration's transparency
-
DC sues Trump to end Guard 'occupation'
Speed Read D.C. Attorney General Brian Schwalb argues that the unsolicited military presence violates the law
-
RFK Jr. faces bipartisan heat in Senate hearing
Speed Read The health secretary defended his leadership amid CDC turmoil and deflected questions about the restricted availability of vaccines
-
White House defends boat strike as legal doubts mount
Speed Read Experts say there was no legal justification for killing 11 alleged drug-traffickers