Higher taxes needed to invest and compete globally: US Secretary of Commerce

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Corporate tax increases are needed to make the United States more competitive globally, US Secretary of Commerce Gina Raimondo told Yahoo Finance Live in an interview. House Democrats have proposed increasing the tax rate for businesses with income of at least $ 5 million to 26.5%.

“If American businesses are to compete, we need these investments,” Raimondo said. “And then the question is, how do you pay them. I don’t know of any business leader who thinks it would be the president’s responsibility to make this government operate as if it had a blank check.

While the Democrat’s proposal falls short of Biden’s original 28% plan, Raimondo said Biden was open to a compromise on the tax rate.

Raimondo highlighted a number of areas where she believes the United States needs to catch up.

“We need a better trained workforce. We need workers who have digital skills. We need every American to have broadband and digital literacy, “she said.” We need affordable child care.

Commerce Secretary Gina Raimondo speaks during a press briefing in the White House briefing room in Washington, Thursday, July 22, 2021 (AP Photo / Andrew Harnik)

The United States does not rank very well relative to its global peers in many of these areas. For example, US policies on child care and parental leave come in 40th place on a list of 41 developed countries ranked by Unicef ​​earlier this year, ahead of only Slovakia. Biden’s plan aims for a cap on childcare costs and universal pre-kindergarten.

Some representatives of American companies say it is not worth the tax blow for companies. “The tax increases that Congress is currently considering are significant and directly target investments. This will cause a big economic blow in terms of the size of the economy, jobs and wages, ”recently wrote Curtis Dubay, senior economist at the US Chamber of Commerce.

Raimondo admits that tax hikes are not popular: “People don’t like tax hikes. And we don’t think businesses would like higher taxes. However, when I talk to business leaders, they are very focused on competing on the global stage, and to do that they say – and I agree, the president agrees – we need to investments.

Julie Hyman is the co-host of Yahoo Finance Live, weekdays 9 a.m. to 11 a.m. ET. Follow her on Twitter @juleshyman, and read his other stories.

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