One of the biggest obstacles that Democrats had to work out was the mandatory corporate tax rate.
This had been one of the major sticking points for Senator Sinema (D-AZ), but she has now caved.
Sinema released a statement late Tuesday afternoon expressing her support for the tax in the reconciliation package.
This was a major concession by Sinema, but it was one we figured she would eventually make.
The pressure she is facing in the party right now is utterly ridiculous, and it won’t stop until she caves completely.
On supporting the new tax, Sinema stated, “This proposal represents a commonsense step toward ensuring that highly profitable corporations — which sometimes can avoid the current corporate tax rate — pay a reasonable minimum tax on their profits, just as everyday Arizonans and Arizona small businesses do.”
Statement on Proposed Corporate Minimum Tax pic.twitter.com/tRLMDXLgot
— Kyrsten Sinema (@SenatorSinema) October 26, 2021
If that tax is put in place, it will impact about 200 major companies.
That cost, of course, will get passed right on to the consumer.
For instance, FedEx is one of the top companies on the list, so expect shipping prices to increase considerably if that tax goes into effect.
That, of course, then impacts the cost of the goods being shipped when they are up on the shelf.
There are much better ways to crack down on corporations, such as hammering golden parachute plans and bonuses given to the top executives.
This gets Democrats one step closer to pushing this bill through with the full support of the party.
Biden has been putting significant pressure on party leaders to get their members in line so this legislation is passed before he heads to Europe for the global summit meetings.
With this concession by Sinema, he is now one step closer to making that happen.
Source: The Hill