Here’s what you need to know to navigate the markets today.
• Congress is back in session this week and will resume discussions over President Joe Biden’s nearly $2.3 trillion infrastructure proposal. Biden is meeting with members from both parties in an effort to win bipartisan support, including Republicans who have voiced objections to the scope of Biden’s plan and his proposal to pay for it by raising the corporate tax rate to 28% from the current 21%. Sen. Roger Wicker (R., Miss.) said on Sunday’s ABC’s “This Week” that if Biden is willing to negotiate a smaller proposal, “I think we can get somewhere and have a much bigger infrastructure package than we were able to do under the last administration.” Meanwhile, progressive members of Congress are urging the president to include a path for citizenship for workers without permanent legal status and lower the age for Medicare eligibility. “It’s time to go big and it’s time to go bold, and enact these as part of a single, ambitious package,” Progressive Caucus Chair
Rep. Pramila Jayapal
(D., Wash.) said.
• The majority of Business Roundtable CEOs surveyed say raising U.S. domestic and international tax rates would negatively affect business expansion, hiring, research and development and innovation, and make U.S. companies less competitive. Of the 178 members surveyed in March, 98% said increasing the corporate tax rate to 28% from 21% would “moderately” to “very” significantly hurt their company’s competitiveness, and 88% said keeping globally competitive U.S. tax policies is important for business expansion. In addition, 75% said increasing the tax burden on U.S. companies would negatively affect their investments in R&D and innovation, 71% said it would negatively affect their ability to hire, and nearly two-thirds said it would slow wage growth for U.S. workers. “While Business Roundtable believes infrastructure investment is a foundation for long-term economic growth, we urge policymakers to avoid tax policy changes that would run counter to the goal of increasing economic growth and job creation,” Business Roundtable President & CEO
• White House officials are meeting today with CEOs from automotive and technology companies to talk about the global semiconductor shortage and other supply chain issues that have idled automotive production. White House national security adviser Jake Sullivan, National Economic Council Director Brian Deese and Commerce Secretary Gina Raimondo were expected to meet with executives including
CEO Jim Farley and
whose company is the parent of Chrysler. Other companies sending representatives include GlobalFoundries,
Taiwan Semiconductor Manufacturing Company,
One U.S. auto industry group estimated that the ongoing shortage of semiconductors could cut production by 1.28 million vehicles this year.
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