US corporate tax rate hike to 28% dies before it even gets a look

Manchin says he won’t support it

Manchin says he won't support it

It’s been less than a week since Biden revealed an infrastructure bill and his plan to pay for it. Part of the funding formula was a hike to a 28% corporate tax rate from 21% but that’s going nowhere.

Democrats need every Senator on board for every proposal with the 50-50 split in the chamber but Joe Manchin says he won’t support 28%.

“As the bill exists today, it needs to be changed,” Manchin said in a radio interview.

He said the highest rate he could support is 25%.

“It’s more than just me,” Manchin said. “There’s six or seven other Democrats who feel very strongly about this. We have to be competitive, and we’re not going to throw caution to the wind.”

This is no surprise. Pretty much everyone assumed 28% was never going to be the final number. If anything, Manchin’s broader endorsement of a 25% rate is higher than I would have assumed. It also sounds like he’s on board with a bill in general makes it more likely we’ll get trillions more in spending.

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