White House eyes tax increases on companies and the wealthy to fund infrastructure, setting up clash with GOP

White House officials are exploring tax increases on businesses, investors and rich Americans to fund the president’s multitrillion-dollar infrastructure and jobs package, according to two people briefed on internal conversations.

The centerpiece of the tax increases would probably be a higher corporate tax rate — reversing part of President Donald Trump’s steep corporate tax cut in 2017 — as well as higher levies on investment income and a higher top marginal tax rate.

The key measures under discussion include raising the corporate tax rate from 21 percent to 28 percent; increasing the global minimum tax paid from about 13 percent to 21 percent; ending federal subsidies for fossil fuel companies; and forcing multinational corporations to pay the U.S. tax rate rather than the lower rates paid by their foreign subsidiaries, according to the officials, who spoke on the condition of anonymity to discuss internal matters not yet public.

The plan also is set to exclude measures pushed by some liberals, particularly the annual tax on wealth pushed by Sens. Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.), among others. Biden’s proposal is also expected to leave out a Democratic push to reverse the GOP tax law’s cap on state and local tax deductions, a priority of Senate Majority Leader Charles E. Schumer (D-N.Y.), the officials said. Many tax experts said that measure would primarily benefit high-income earners.

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