Chamber of Progress, a new tech industry group funded by giants like Amazon, Facebook and Google, is announcing its support for a corporate tax increase like the one President Joe Biden proposed to fund his $2 trillion infrastructure plan.
The move sets Chamber of Progress, a new center-left group, apart from other business organizations that have opposed Biden’s tax hike, like the Business Roundtable and U.S. Chamber of Commerce. While the group’s endorsement does not reflect the individual views of each company that funds it, it does send a signal that the tech industry is open to higher tax rates and supports greater infrastructure investment.
Chamber of Progress launched late last month and is an industry coalition focused on a range of economic, social and consumer issues, including creating a social safety net and tackling income inequality.
Biden proposed raising the corporate tax rate from 21% to 28% to help fund his American Jobs Plan, which includes infrastructure proposals that span the entire economy. The plan includes money to expand broadband availability, which is key to the success of internet businesses, and other priorities the tech industry has emphasized, like clean energy.
“The plan speaks to a lot of goals that I think many people in the tech industry have wanted to see for a long time,” Adam Kovacevich, founder and CEO of Chamber of Progress, said in an interview with CNBC on Wednesday.
Kovacevich said his group’s openness to a higher tax rate isn’t a decision based on bottom line calculations.
“Certainly all business benefits when there’s better infrastructure,” he said. “But I really don’t think people in the tech industry view it that way. I don’t think they’re thinking, ‘this is great for the bottom line.’ Most people in tech think these kind of investments are good for American society and for America’s technological leadership in the world, too.”
Kovacevich said it’s possible for the tech industry to take this position because, in his