Sandy Springs-based UPS said Thursday it opposes a proposed hike in corporate tax rates to pay for President Joe Biden’s infrastructure plan.
Biden last week outlined a $2.3 trillion plan to build up the nation’s infrastructure over the next eight years, for everything from roads, bridges, public transit, electric vehicle charging stations to upgrading sewers, broadband Internet and the power grid.
To help pay for it, Biden proposed increasing the U.S. corporate tax rate to 28% from 21%. The tax rate on corporate profits was cut to 21% from 35% through the Tax Cuts and Jobs Act in 2017 under then-President Donald Trump.
UPS issued a statement saying it “applauds President Biden for prioritizing infrastructure funding, specifically efforts that will make the nation’s roads, highways and bridges safer for our essential workers and the communities we serve.”
But the package delivery giant urged the use of a “user pay” model such as an increase in federal fuel taxes, and said it supports the launch of a pilot program for a tax based on vehicle miles traveled.
“Funding and investing in our nation’s transportation infrastructure is essential to remaining competitive in today’s global economy and UPS believes it should pay its fair share, but does not support increasing corporate tax rates to pay for what should be a dedicated infrastructure funding source,” the company said.
The U.S. Chamber of Commerce has also voiced opposition to a corporate tax rate increase. It said Wednesday that while there is “a great need” to invest in American infrastructure, “that doesn’t mean we should proceed with tax hikes that will hurt American businesses and cost American jobs.”
But Amazon founder and CEO Jeff Bezos said he supports a corporate tax rate hike to help pay for the infrastructure plan.
“We recognize this investment will require concessions from all sides — both on the specifics of what’s included as well as how it gets paid for (we’re supportive of a rise in the corporate tax rate),” Bezos wrote Tuesday.
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