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Biden proposes 15% minimum corporate tax rate to help pay for infrastructure

President Joe Biden has proposed focusing on a minimum corporate tax rate of 15%, as well as increased Internal Revenue Service funding, as a way to to pay for a possible infrastructure package, according to a person familiar with the matter.

Driving the news: The proposal could could help negotiations with Senate Republicans. Biden made the offer in his meeting yesterday with Sen. Shelley Moore Capito (R- W.Va.) who is leading a group of GOP centrists trying to find a compromise on infrastructure spending.

  • The Washington Post first reported Biden’s new offer, couching it as a concession to Republicans who are unwilling to touch any of the 2017 tax cuts signed into law by former President Trump.
  • Biden and Moore Capito are trying to find an agreement between Biden’s initial $2.3 trillion plan the would fund traditional infrastructure projects as well as billions for caregivers and other expanded social programs and the GOP's $1 trillion counter offer that focuses on infrastructure projects.
  • The White House is giving the bipartisan talks until June 7, and then officials will shift the focus to passing a bill only with Democratic votes.

The big picture: While Biden proposed his 15% minimum tax when he unveiled his American Jobs Plan in April, as one of several revision to corporate tax structure, he is giving it renewed attention because Republicans haven't explicitly opposed it.

  • Treasury Secretary Janet Yellen is working to convince other Group of seven finance ministers in London to adopt a minimum rate to avoid a tax competition among western democracies.

By the numbers: Biden's original plan to increase the corporate tax rate from 21% to 28% is estimated to raise roughly $1.5 trillion over ten years, according to the University of Pennsylvania Wharton Budget Model.

  • Raising the international minimum from 10.5% to 21% would raise an addition $1.2 trillion.
  • But both of those proposals would fiddle with Trump’s 2017 corporate tax rewrite and are therefore non-starters for many Republicans.
  • The 15% minimum tax rate that Biden focused on in the meeting would bring in roughly $340 billion.
  • Biden also wants to capture an addition $700 billion through increased tax enforcement from the Internal Revenue Service, a suggestion that some Republicans are open to, although they question the amount of revenue it would raise.

The bottom line: Biden and Republicans are still far apart on any deal, but both sides are working to find common ground ahead of a June 7 deadline that could easily be pushed back.

E3 2021: Nintendo and Ubisoft team up again with Switch sequel “Mario + Rabbids Sparks of Hope"

Two of gaming’s biggest companies are creating a game together for the third time in five years with a Switch sequel, “Mario + Rabbids Sparks of Hope.”

Why it matters: Nintendo rarely lets other companies work with its characters, making its continued partnerships with Ubisoft a rare sign of trust.

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In photos: Harris shows up at Pride parade in downtown D.C.

Vice President Kamala Harris dropped in at the Capitol Pride Walk And Rally in Washington, D.C., on Saturday.

The state of play: Harris and second gentleman, Doug Emhoff, joined the crowd, who welcomed them with cheers, according to press reports.

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A "new industrial revolution" presses the reset button on work

The endgame of the pandemic is giving both employers and workers a chance to create a more humane relationship — both in the office and out of it.

The big picture: Companies need workers, but many employees aren't ready to go back to the way things used to be. A hybrid setup could provide the best possible way forward, if both sides are willing to give.

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Blue Origin auctions off a trip to the edge of space for $28 million

A seat aboard Blue Origin’s first crewed flight to suborbital space fetched $28 million during a live auction on Saturday.

Why it matters: While the market for suborbital tourist flights to space may not be huge, experts say it's an important, public-facing part of the space industry that could popularize it as more people start flying.

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Macron at G7: "It's great to have the U.S. president part of the club"

U.S. President Biden and his French counterpart Emmanuel Macron were all smiles and handshakes during their first formal, in-person meeting on Saturday, with Macron telling pool reporters "it's great to have the U.S. president part of the club."

Why it matters: Biden has made rebuilding the United States' global leadership central to his foreign policy, frequently touting, "America is back."

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More than dozen injured in downtown Austin shooting

A shooting in a busy part of downtown Austin, Texas, early Saturday injured at least 13 people, including two who are in critical condition.

The state of play: Gunfire erupted around 1:30 a.m. along 6th Street, a popular area with bars and restaurants. The suspected shooter remains at large, Austin police said. "It is unknown if there is one, or multiple suspects involved," they noted, adding the shooting appears to be an isolated incident.

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Biden to urge G7 to take unified approach to countering China

President Biden on Saturday is expected to urge fellow G7 leaders to adopt a unified approach to countering China's rising global influence, AP reports.

Driving the news: The G7 leaders are set to unveil a multi-billion-dollar global infrastructure plan aimed at rivaling Beijing's efforts in the developing world.

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