A proposed corporate tax increase, dimmed hopes for a $3.5 trillion social and environmental bill, mixed business reaction to those proposals, calls for new COVID-19 relief, restaurant uncertainty, and a blow to Connecticut’s agricultural industry are among the top business news items this morning.
House Democrats are likely to propose a corporate tax rate of 26.5 percent to help fund the party’s spending priorities. The figure is up from a 21 percent rate set under the Trump administration, but slightly lower than the 28 percent rate floated earlier this year.
Senator Joe Manchin, a key Democratic vote in an evenly divided Senate, says he can’t support $3.5 trillion in spending on a major social and environmental policy bill. Manchin is asking the bill to be pared back to $1 trillion to $1.5 trillion to win his support.
Businesses are giving mixed reviews to the $3.5 trillion social policy proposal, according to the New York Times. Company leaders note how several initiatives have the potential to improve participation in the labor force and employee benefits, but are also wary of some parts of the bill as well as tax increases that would be required to fund it.
Businesses that suffered major revenue losses during the COVID-19 pandemic are calling on Congress to renew aid programs as a fourth wave of infections again constrains economic activities. Restaurants, gyms, and live venues are among the industries looking for more funding support following the expiration of most relief programs earlier this year.
Restaurants in particular are facing major challenges, according to the Wall Street Journal. Consumer demand is wavering amid the new COVID surge driven by the Delta variant of the virus, and restaurants are working to address labor shortages and potentially return to an emphasis on outdoor dining.
Connecticut farmers are facing a rough year after torrential rains this summer followed drought conditions in 2020. Farms in low-lying areas have been particularly hard-hit, though vineyards and orchards have not suffered major damages.