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Trump offers CEOs a cut to corporate taxes. Biden's team touts his support for global alliances

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Trump offers CEOs a cut to corporate taxes. Biden's team touts his support for global alliances
News

News

Trump offers CEOs a cut to corporate taxes. Biden's team touts his support for global alliances

2024-06-14 07:14 Last Updated At:07:21

WASHINGTON (AP) — Former President Donald Trump told an influential group of CEOs that he wants to further cut the corporate tax rate he lowered while in office, while President Joe Biden's chief of staff separately told them that the Democratic incumbent’s emphasis on global alliances would help their businesses.

Both Trump, the presumptive Republican nominee, and Jeffrey Zients met behind closed doors on Thursday with the Business Roundtable in Washington, with Zients stepping in for Biden during the president's meetings with Group of Seven leaders in Italy. The prominent group representing more than 200 CEOs just rolled out an effort to preserve the tax breaks for businesses that Trump signed into law in 2017.

Neither side commented publicly on what was said in the meeting, which comes as Biden and Trump head toward a 2020 rematch with sharply different views on taxes and the economy.

Trump said that he would like to cut the corporate tax rate by a percentage point to an even 20%, according to a person familiar with his remarks who insisted on anonymity to discuss the closed-door meeting. The former president focused his remarks on taxes, inflation and the need for more oil production, the person said.

Another person familiar with the conversations said Zients made the case that America’s global reputation and its independent institutions such as the Federal Reserve fostered the kind of trust worldwide that allowed U.S. capitalism to thrive. The statements were a jab at Trump’s camp, as the former president had previously hit allies with tariffs and sought greater control over Fed policies.

Zients said the post-pandemic economic recovery was possible in part because the Biden administration worked with businesses on issues such as supply chains, the person said. And he indicated to the CEOs that Trump's pledges to deport millions of people and wage potential trade wars could drive up inflation. The person also insisted on anonymity to discuss details of the meeting, having not been authorized to do so publicly.

The Business Roundtable has made low taxes its top legislative priority. The group announced that it would spend at least $10 million on a campaign to keep the corporate tax rate at 21% as well as promote business-friendly changes to the U.S. tax code and push to extend tax incentives for research and development.

Part of the 2017 tax cuts that Trump signed into law while president is expiring after 2025, likely raising taxes for most U.S. households. That sets up a showdown between Democrats and Republicans about how to rewrite the tax code.

Leaders from both parties want to preserve the cuts for those making under $400,000. But some Trump backers want to expand the tax cuts, including for companies. Biden would like to raise the corporate rate to 28% and introduce higher taxes on the wealthy to fund programs for the middle class.

The Biden administration has also maintained that tax cuts should be paid for as part of a proposal, while the 2017 overhaul approved by Trump led to higher budget deficits as the promised growth did not materialize.

Recent economic research indicates that Trump’s corporate tax cuts did boost business investment, but not by enough for the additional growth needed to cover the cost of those tax cuts. The Congressional Budget Office estimates that a full extension of the expiring tax cuts would cost $4.9 trillion over 10 years, including additional interest on the debt. The federal government's publicly held debt stands at nearly $27.6 trillion.

Business leaders argue that lower taxes make them more competitive globally. That enables them to hire more workers and invest in new technologies. This, in turn, would help boost growth.

BRT members from Cisco and Procter & Gamble told reporters Wednesday that higher rates would cause them to invest less in the U.S.

Jon Moeller, P&G’s CEO and board chairman, said a tax increase would likely be passed on to consumers in the form of higher prices, limit wage growth for employees and be borne by shareholders.

“Making the assumption that companies are big and strong and they can absorb this, that’s kind of naive in terms of what will actually happen,” Moeller said. “It’s a societal impact.”

Biden’s budget proposal would raise corporate taxes by nearly $2.2 trillion over 10 years. More than half of that new revenue would come from resetting the corporate tax rate at 28% — an increase, though still lower than the 35% rate Trump inherited.

Trump, meanwhile, has suggested that higher corporate taxes would ravage the nation itself.

“Biden wants to raise taxes on top of that and raise business taxes, which will lead to the destruction of your jobs and, you know what, ultimately it’s just going to lead to the destruction of the country,” Trump said at a rally in May.

From left, Canada's Prime Minister Justin Trudeau, German Chancellor Olaf Scholz, European Council President Charles Michel, European Commission President Ursula von der Leyen, French President Emmanuel Macron, Britain's Prime Minister Rishi Sunak, U.S. President Joe Biden, Italian Prime Minister Giorgia Meloni, and Japan's Prime Minister Fumio Kishida applaud and salute to an Italian Army parachuter after watching a skydiving demo during the G7 world leaders summit at Borgo Egnazia, Italy, Thursday, June 13, 2024. (AP Photo/Domenico Stinellis)

From left, Canada's Prime Minister Justin Trudeau, German Chancellor Olaf Scholz, European Council President Charles Michel, European Commission President Ursula von der Leyen, French President Emmanuel Macron, Britain's Prime Minister Rishi Sunak, U.S. President Joe Biden, Italian Prime Minister Giorgia Meloni, and Japan's Prime Minister Fumio Kishida applaud and salute to an Italian Army parachuter after watching a skydiving demo during the G7 world leaders summit at Borgo Egnazia, Italy, Thursday, June 13, 2024. (AP Photo/Domenico Stinellis)

From right, Italian Prime Minister Giorgia Meloni, U.S. President Joe Biden, French President Emmanuel Macron, European Commission President Ursula von der Leyen, Japan's Prime Minister Fumio Kishida, Canada's Prime Minister Justin Trudeau, German Chancellor Olaf Scholz, Britain's Prime Minister Rishi Sunak and European Council President Charles Michel watch a skydiving demo during the G7 world leaders summit at Borgo Egnazia, Italy, Thursday, June 13, 2024. (AP Photo/Domenico Stinellis)

From right, Italian Prime Minister Giorgia Meloni, U.S. President Joe Biden, French President Emmanuel Macron, European Commission President Ursula von der Leyen, Japan's Prime Minister Fumio Kishida, Canada's Prime Minister Justin Trudeau, German Chancellor Olaf Scholz, Britain's Prime Minister Rishi Sunak and European Council President Charles Michel watch a skydiving demo during the G7 world leaders summit at Borgo Egnazia, Italy, Thursday, June 13, 2024. (AP Photo/Domenico Stinellis)

FILE - White House chief of staff Jeff Zients arrives for an event on artificial intelligence systems during an event in the East Room of the White House, Oct. 30, 2023, in Washington. Zients has argued to an influential group of CEOs that the Democratic incumbent's emphasis on global alliances would help their businesses.(AP Photo/Evan Vucci, File)

FILE - White House chief of staff Jeff Zients arrives for an event on artificial intelligence systems during an event in the East Room of the White House, Oct. 30, 2023, in Washington. Zients has argued to an influential group of CEOs that the Democratic incumbent's emphasis on global alliances would help their businesses.(AP Photo/Evan Vucci, File)

Republican presidential candidate former President Donald Trump speaks with reporters at the National Republican Senatorial Committee, Thursday, June 13, 2024, in Washington. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump speaks with reporters at the National Republican Senatorial Committee, Thursday, June 13, 2024, in Washington. (AP Photo/Evan Vucci)

REHOBOTH BEACH, Del. (AP) — President Joe Biden said Saturday that “everybody must condemn” the suspected assassination attempt on former President Donald Trump.

Addressing the nation about two hours after the shooting, Biden said he was relieved that Trump is reportedly “doing well.” He said he had been unable to reach Trump before his remarks, but the White House said he did speak to Trump several hours later.

“We cannot allow this to be happening,” Biden said. “The idea that there’s violence in America like this is just unheard of."

Biden, speaking without a teleprompter, said he was waiting for additional information before formally calling the attack an attempted assassination on the former president.

“I have an opinion, but I don’t have any facts,” he told reporters, pledging to provide updates as he learns more.

After midnight, he returned to the White House, cutting short a weekend stay in Delaware. The White House said he and Vice President Kamala Harris will receive an updated briefing from homeland security and law enforcement officials Sunday morning.

The president delivered remarks from the White House’s emergency briefing room in Rehoboth Beach, Delaware, which is set up whenever the president travels to allow him to deliver remarks to the country in a matter of minutes. He was spending the weekend at his beach home and was at a nearby church for mass when the shooting occurred.

As he left the church, reporters asked if the president had been briefed about the shooting. Biden turned toward reporters with a serious look on his face but replied simply, “no,” before stepping into his motorcade.

Biden received an “initial briefing” from aides moments later then convened security officials for a more in-depth update from Kimberly Cheatle, the director of the United States Secret Service, Homeland Security Secretary Alejandro Mayorkas, and White House homeland security adviser Liz Sherwood-Randall.

Many Republicans quickly blamed the violence on Biden and his allies, arguing that sustained attacks on Trump as a threat to democracy have created a toxic environment. They pointed in particular to a comment Biden made to donors on July 8, saying “it’s time to put Trump in the bullseye.”

There was no immediate information on the shooter or their motivations.

The Biden campaign said Saturday that it was pausing all messaging to supporters and working to pull down all of its television ads as quickly as possible in light of the shooting.

Vice President Kamala Harris said in a statement that she was also briefed, adding that she and her husband “are relieved" that Trump was not seriously inured.

“We are praying for him, his family, and all those who have been injured and impacted by this senseless shooting,” she said.

President Joe Biden arrives on Air Force One at Andrews Air Force Base, Md., Saturday, July 13, 2024. President Biden is going back to Washington from Delaware earlier than planned following the attack at the Trump rally in Pennsylvania. (AP Photo/Manuel Balce Ceneta)

President Joe Biden arrives on Air Force One at Andrews Air Force Base, Md., Saturday, July 13, 2024. President Biden is going back to Washington from Delaware earlier than planned following the attack at the Trump rally in Pennsylvania. (AP Photo/Manuel Balce Ceneta)

President Joe Biden arrives to speak, Saturday, July 13, 2024, in Rehoboth Beach, Del., addressing news that gunshots rang out at Republican presidential candidate former President Donald Trump's Pennsylvania campaign rally. (AP Photo/Manuel Balce Ceneta)

President Joe Biden arrives to speak, Saturday, July 13, 2024, in Rehoboth Beach, Del., addressing news that gunshots rang out at Republican presidential candidate former President Donald Trump's Pennsylvania campaign rally. (AP Photo/Manuel Balce Ceneta)

President Joe Biden speaks, Saturday, July 13, 2024, in Rehoboth Beach, Del., addressing news that gunshots rang out at Republican presidential candidate former President Donald Trump's Pennsylvania campaign rally. (AP Photo/Manuel Balce Ceneta)

President Joe Biden speaks, Saturday, July 13, 2024, in Rehoboth Beach, Del., addressing news that gunshots rang out at Republican presidential candidate former President Donald Trump's Pennsylvania campaign rally. (AP Photo/Manuel Balce Ceneta)

President Joe Biden speaks, Saturday, July 13, 2024, in Rehoboth Beach, Del., addressing news that gunshots rang out at Republican presidential candidate former President Donald Trump's Pennsylvania campaign rally. (AP Photo/Manuel Balce Ceneta)

President Joe Biden speaks, Saturday, July 13, 2024, in Rehoboth Beach, Del., addressing news that gunshots rang out at Republican presidential candidate former President Donald Trump's Pennsylvania campaign rally. (AP Photo/Manuel Balce Ceneta)

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