Congressman John Delaney

Representing the 6th District of Maryland
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Delaney to White House: Raise Corporate Rate to 23% to Pay for Infrastructure Plan

Jan 4, 2018
Press Release

WASHINGTON – Today, Congressman John K. Delaney (MD-6) wrote to President Donald Trump, urging him to embrace a bipartisan approach on infrastructure. Multiple reports have indicated that infrastructure will be a top White House priority in 2018. In his letter to President Trump, Delaney wrote: “I have a very simple proposal for you to consider that I believe would be a win for workers, a win for the economy and a win for the country: let’s raise the corporate rate from 21% to 23% and use the $200 billion saved to upgrade our infrastructure.” Delaney also added: “The two areas where Congressional Republicans clearly gave away way too much to big business and investors was on lowering the corporate rate to 21% and on not making any real changes to carried interest. Wouldn’t it be a better deal if you were to claw some of that back and have a real infrastructure plan?”

Congressman Delaney has been a leading advocate for using revenues from tax reform to pay for infrastructure since 2013 and his efforts to bring both parties together led to him being named one of the World’s Greatest Leaders by Fortune.

 

The full text of the letter is copied below:

 

January 4, 2018

 

 

President Donald J. Trump
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

 

 

 

Dear President Trump,

 

 

I hope that you had a joyous holiday season and a merry Christmas. As you know, the people expect big things from the government and want us to address the big problems facing the country. The last year was defined by hyper-partisanship, but a new year offers a new opportunity for a new approach focused on the common good and in finding common ground. That should start with infrastructure.    

 

Infrastructure is a way for Republicans and Democrats to work together in a bipartisan way to create good-paying jobs, boost our business climate, spur economic growth and really improve people’s quality of life. The benefits of infrastructure for our businesses and economic competitiveness cannot be understated and it will create millions of middle class jobs.

 

As your administration finalizes your infrastructure plan, I have a very simple proposal for you to consider that I believe would be a win for workers, a win for the economy and a win for the country: let’s raise the corporate rate from 21% to 23% and use the $200 billion saved to upgrade our infrastructure. A 23% corporate rate would still be a significant cut from the prior 35% for businesses and would still be lower than the 25% rate many business organizations pushed for years. Moreover, this small change to the new tax law would be more than worth it, because smart infrastructure investment helps businesses compete and grow. Adjusting the corporate rate from 21% to 23% would raise $200 billion, enough to seed and fund multiple infrastructure initiatives that could – when leveraged with other private and public capital – pay for a $1 trillion infrastructure plan similar to the bipartisan Infrastructure 2.0 Act I have in the Congress. The fact is, regulatory relief and public-private partnerships won't be enough to fix America's infrastructure – we're going to have to also make a real investment at the federal level.

 

The two areas where Congressional Republicans clearly gave away way too much to big business and investors was on lowering the corporate rate to 21% and on not making any real changes to carried interest. Wouldn’t it be a better deal if you were to claw some of that back and have a real infrastructure plan?  Everyone would win, including big business and investors, and most importantly, hard-working Americans. 

 

Democrats are ready to work with you on infrastructure. Let’s work together in a bipartisan way so that we can advance a solution that is built to last.

 

Please do not hesitate to reach out to my office if your staff has questions or concerns.

Sincerely,

John K. Delaney
Member of Congress