WASHINGTON (NEXSTAR) — Republicans are pushing a new infrastructure proposal they say uses funds that have gone unspent.
“We’re not raising taxes,” Sen. Pat Toomey (R-Pa.) said.
This week, Toomey and other Senate Republicans unveiled a nearly 1 trillion-dollar counteroffer to President Joe Biden’s infrastructure plan.
“We believe that the 2017 tax reform contributed significantly to enabling us to achieve the best economy of my lifetime,” Toomey said.
Instead, Toomey says the administration can utilize billions of dollars of unused COVID relief funds to support what he calls real infrastructure.
“We believe that repurposing these funds needs to be a really important part of how we fill this gap,” Toomey said.
Democrats say it’s good to see cooperation between the administration and Republicans, but say they aren’t ready to accept this latest offer.
“It doesn’t make sense when we can derive substantial revenue, just by increasing in a very reasonable way, the corporate tax rate,” Sen. Bob Casey (D-Pa.)
Casey says every 1% increase to corporate taxes would equal 100 billion dollars, allowing the bill to pay for itself.
“Taking the corporate rate from 21 to 28, that seven-point movement gives you more than 700 billion dollars, which is 2/3rds of the republican proposal,” Casey said.
Casey says without a serious offer from Republicans, Democrats will be forced to use the budget reconciliation process, which only requires a simple majority.