Republicans have attacked Manchin — the West Virginia senator whose vote is critical to passage of the inflation-reducing law — for reversing corporate tax cuts implemented during Donald Trump’s presidency, saying the move will hinder investment in the US. “The last two years have been huge, record profits,” Manchin said on NBC’s Meet The Press. “And with that being said, it was the lowest capital expenditure investment we’ve ever had. So it’s not the taxes that drive it,” he said. On Sunday, Pat Toomey, the Republican senator from Pennsylvania, warned in an interview with CBS News that the new bill, specifically the corporate tax change, “will slow growth, possibly exacerbate a recession that we’re probably already in.” . “. “This will worsen our recession. It will worsen inflation. It’s not going to do any good,” Toomey said. Democrats have stressed that the legislation would not raise taxes on Americans making less than $400,000 a year. In a series of television appearances on Sunday, Manchin denied that the new 15 percent minimum tax rate on companies with profits above $1 billion was a new tax, saying it closed “a loophole.” “THE [corporate] The tax rate was 35 percent in 2017. . . Went to 21. Down 14 percent. I think everybody in West Virginia, and most people in America who . . . pay their taxes they think everyone would pay at least 21,” Manchin told ABC News. Manchin’s decision last week to support the bill drew condemnation from Republicans, who accuse Democrats of tricking them into backing a bipartisan $280 billion bill to support the U.S. semiconductor industry before revealing hours later that its leaders party had secured Manchin’s support to pass even higher inflation. Diminishing law. The Senate is set to take up the legislation next week as part of a final legislative flurry before Congress departs for its annual August recess. In addition to providing $369 billion for green initiatives and energy reforms and $64 billion to support the Affordable Care Act, the bill would also allocate about $300 billion to deficit reduction. The measures are to be paid for by the minimum corporate tax rate and by tightening the tax loophole on “carried interest”.

Deferred interest allows profits accrued by investment managers to be taxed at a lower rate than ordinary income. While these investments currently have to be held for at least three years to be eligible for the lower tax rate, the new legislation will extend that timeframe to at least five years. To pass the bill, Democrats also need the support of Sen. Kyrsten Sinema of Arizona, a Democrat who, like Manchin, is often at loggerheads with her party on critical legislation and has previously signaled her opposition to the shutdown. void of transferred interests. On Sunday, Manchin said he would not speak for Sinema or how he planned to vote on the bill, but said he believed he was generally in favor of many of the measures proposed in the legislation, especially since the bill included “no tax increase ». as Cinema had demanded. “He has a huge input on this bill. And I would like to think she would be favorable to that,” Manchin told Meet The Press.

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