Business world divided on whether to fight corporate tax hike in Biden’s infrastructure plan

Business world divided on whether to fight corporate tax hike in Biden’s infrastructure plan

President Joe Biden speaks during his first press briefing in the East Room of the White House in Washington, DC, on March 25, 2021.

In some cases, corporate clients discussed with lobbyists potentially negotiating with the White House and congressional Democrats potential tradeoffs for raising the corporate rate to 28%, according to a lobbyist who represents tech giants and Wall Street banks. One of the ideas being floated behind the scenes is to convince Congress to find a middle ground on global intangible low-taxed income, or GILTI.

The White House unveiled the plan Wednesday, and Biden will discuss it in remarks in Pittsburgh later in the day. It calls for raising the corporate tax rate to 28% from 21%.

Lobbyists and other D.C. influence makers told CNBC that they have received calls from anxious corporate clients eager for guidance on the path forward. Some of the people declined to be named in this story in order to speak freely about ongoing private conversations.  

Several prominent business groups, such as the U.S. Chamber of Commerce, oppose the proposed tax hikes. Behind the scenes, though, some companies are considering whether to put up much of a fight because of corporate America's demand for an infrastructure overhaul,