U.S. President Joe Biden met with Sen. Shelley Moore Capito, R-W.Va., on infrastructure negotiations. Photo by Samuel Corum/UPI | License Photo
June 3 (UPI) -- President Joe Biden offered to narrow the scope and price tag of his $1.7 trillion infrastructure package in a concession to Republicans that would also ditch his effort to raise the corporate tax rate, people familiar with the negotiations said Thursday.
Biden put forth a new $1 trillion proposal to Sen. Shelley Moore Capito, R-W.Va., during a meeting Wednesday, unnamed sources told The Washington Post, The Wall Street Journal and The New York Times. Capito is leading the Senate Republicans' negotiations with Biden on the deal.
Biden initially proposed a $2 trillion package that included two parts -- the American Jobs Plan and the American Families Plan -- to focus on modernizing transportation infrastructure, including roads, bridges and airports. He also sought to boost the electric vehicle market, expand broadband Internet access, upgrade schools and affordable housing, increase job training, and care for elderly and disabled Americans.
He sought to pay for the package by raising the tax rates on corporations and wealthier Americans, a plan staunchly opposed by Republicans, who have countered with narrower proposals.
Biden, though, said he was willing to negotiate on how much the corporate tax was increased, and on Wednesday offered to ditch the hike entirely to gain Republican support.
His new proposal is half what he originally sought to pass, but still includes nearly four times the new spending Republicans wanted in their own counteroffer. Funding for Republicans' latest $928 billion proposal comes mostly from existing programs and unspent pandemic relief.
Capito and Biden were expected to speak again Friday and could decide by next week if there is enough compromise to proceed on bipartisan legislation.