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On Thursday, the White House press secretary Jen Psaki informed reporters and said, “What happened over the last couple of days and also in the meeting with Capito yesterday is that the president did a thorough review of all of the tax reforms he’s proposed”. Point to be noted that US President Joe Biden met with Republicans to negotiate over a deal on infrastructure spending. The move marked his most recent conversation with GOP Senator Shelley Moore Capito. Biden highlighted his proposal to help pay for it with taxes. His proposal includes a 15% minimum tax on the nation’s most profitable companies. Psaki said that Biden has agreed to slim down to $1.7 trillion and establishing a minimum corporate book tax rate for some companies originated in the American Jobs Plan ($2.3 trillion infrastructure proposal).

However, the levy would be a 15% tax on the wealthiest companies’ book income according to the first iteration of the jobs plan. It is the high profits they disclose to their shareholders in their annual reports as opposed to what is normally their taxable income.  The figure can often be as low as zero because the Biden administration estimates significant gaps in the current tax law. This tax will supposedly be applied to the approximately 200 companies with at least $2 billion in profits each year. Most Republicans have criticized the proposal of President Biden to increase the corporate tax rate from 21% to 28%. Psaki also said that Biden is absolutely not dumping his desire to increase the overall corporate tax rate.

President Biden has emphasized the minimum book tax for some corporations. It has indicated a readiness to work with Republicans over his proposal for the legislation. Press secretary also said, “This should be completely acceptable to a number of Republicans who have said as their bottom line that they want to leave the 2017 tax law untouched”. She pointed out that this is not a new idea, but is a component of what he’s proposed as a pay-for that he’s lifting up as a question of whether they could agree to that”. It is noteworthy that the Washington Post first reported about President Biden’s emphasis on the minimum tax rate for corporations as a pay-for.