Biden could agree to a 25% corporate tax rate as a compromise with business groups, rather than the 28% he wanted, according to a report

By Grace Dean4 days ago

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President Joe Biden.

Jabin Botsford/The Washington Post via Getty Images

  • Lawmakers and businesses could settle on a corporate tax rate of 25%, White House officials told Reuters.
  • President Biden has pushed for a 28% corporate tax rate to fund his $2 trillion infrastructure plan.
  • But Biden has said he's open to negotiations, and sources said 25% was a reasonable compromise.
  • See more stories on Insider's business page.

President Joe Biden may not achieve his proposed corporate tax rise to 28%, but lawmakers and corporations could agree on a 25% rate as a compromise, White House officials and business groups told Reuters.

The US corporate tax rate is 21%, but Biden wants to raise it to help fund his $2 trillion infrastructure plan. He defended his 28% rate proposal on Wednesday, saying he was “sick and tired of ordinary people being fleeced“ while large firms paid little or no income tax - but added that he was “wide open“ to negotiating a lower rate.

Reuters spoke to more than a dozen corporate and White House officials involved in the push for the infrastructure plan, and most said they expected Biden and business groups to agree on a tax rate of 25%. This would bridge the gap between industry leaders, who generally oppose a tax hike, and Democrat lawmakers, who are overwhelmingly in favor of the 28% rate.

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