On March 7, 2025, a group of Republican senators unveiled a new bill aimed at blocking President Joe Biden’s proposed corporate tax hikes, which they argue will hurt American businesses, reduce job opportunities, and stifle economic growth. The bill, titled the “Tax Relief and American Competitiveness Act,” seeks to prevent the administration from increasing the corporate tax rate from 21% to 28%, a key component of Biden’s broader fiscal plan aimed at funding infrastructure projects and social programs.
Senator John Barrasso (R-WY), the bill’s lead sponsor, was joined by Senators Ted Cruz (R-TX), Shelley Moore Capito (R-WV), and Lisa Murkowski (R-AK) in introducing the legislation. Barrasso expressed concerns that Biden’s tax plan would undermine U.S. businesses’ ability to compete globally, ultimately harming American workers and consumers by driving up prices and reducing investments.
“Biden’s corporate tax hikes are a direct attack on American businesses, and they will raise prices for consumers and kill jobs in critical industries,” Barrasso said during the bill’s introduction. “This legislation is about protecting hardworking American families and ensuring that businesses remain competitive in the global marketplace.”
Biden’s proposed tax hikes are designed to increase funding for the administration’s massive infrastructure spending package, which aims to modernize roads, bridges, and public transit systems, as well as fund green energy initiatives and expand the social safety net. The proposed corporate tax rate increase is intended to generate additional revenue to support these investments.
However, Republicans argue that the tax hikes will have a negative impact on businesses and the economy as a whole. They point out that higher corporate taxes will likely lead to fewer jobs and less innovation, as businesses would be forced to divert resources away from growth and investment to cover higher tax liabilities. The GOP also emphasizes that the U.S. is already one of the highest-taxed nations for corporate taxes, and increasing the tax burden further could drive companies to relocate abroad or scale back operations.
The bill introduced by the GOP would keep the corporate tax rate at 21% and provide tax incentives to stimulate job growth and economic expansion. Industry groups like the U.S. Chamber of Commerce and the National Federation of Independent Business (NFIB) have voiced their support for the bill, warning that Biden’s tax plan could harm small businesses and hinder economic recovery in the wake of the pandemic.
“We need tax reform that incentivizes investment and job creation, not punitive tax increases that hurt small businesses and American competitiveness,” said a spokesperson for the NFIB.
However, the Biden administration and its allies argue that the corporate tax hikes are necessary to ensure that corporations pay their fair share in funding infrastructure and social programs. Environmental organizations have also supported the tax increases, arguing that the revenue generated could fund clean energy projects and climate-related initiatives.
“This is about ensuring that corporations contribute to the investments necessary to build a more equitable and sustainable economy,” said a spokesperson from the Sierra Club.
As this bill heads to debate in Congress, the issue of corporate taxes and economic growth is expected to be a major point of contention in the upcoming election cycle, with both parties vying for control over the nation’s fiscal future.
