The White House has released a $ 2 trillion 8-year plan for US infrastructure investments that will create jobs, rebuild the post-pandemic economy and compete with China. The plan provides for funding by raising the corporate tax rate to 28% – a measure that is not supported by the Republicans.
On Wednesday, 46th US President Joe Biden unveiled his second major “bailout plan for the US economy,” called the American Employment Plan, following the passage of a $ 1.9 trillion bill. help with a pandemic.
The new program is designed for eight years and provides $ 2 trillion. investment in infrastructure, climate change and job creation.
However, this is only half of the new administration’s plan – in a few weeks Biden will present the second part of the package of measures for another $ 2 trillion. long-term investments to be made in education, more affordable health care, and increased paid leave for Americans.
Before being adopted, these measures must be agreed by legislators. House Speaker Nancy Pelosi has indicated that she hopes to pass an infrastructure plan by July 4, but the timing will depend on negotiations between Democrats and Republicans, which are split 50 to 50 in the Senate.
The US Employment Plan, published by the White House, provides funding for infrastructure investment by raising the corporate tax rate from 21% to 28% and changing the tax code that close loopholes that allow companies to take profits offshore.
Earlier, Joe Biden, Treasury Secretary Janet Yellen and the Democratic team announced measures to raise the income tax rate for individuals earning more than $ 400,000 a year, but this was not mentioned in an official press release released on Wednesday. Read more about the impending US tax hikes in the Marketinfo.pro article “Biden Prepares a Major US Tax Hike Program”.
However, Republicans of Congress are likely to backtrack on tax hikes given that in 2017, thanks to their efforts, the US corporate tax rate was cut from 35% to 21% as part of tax legislation.
Republican Senate minority leader Mitch McConnell said the tax hike would “kill jobs and slow wage growth.”
President Biden is convinced that this will be a “unique investment in America” that will help rebuild the economy and counter the national security threat posed by China, comparable in scale to this effort to a space program race.
“We cannot afford not to do this,” Biden said, referring to the modernization of the US infrastructure.
According to the White House, the plan will spread the cost of projects over an eight-year period and aims to pay all costs over 15 years without increasing the country’s long-term debt.
Biden’s team will try to coordinate this infrastructure program with Republicans in the House of Representatives and the Senate. However, given the Democrats’ slight edge, the plan could be passed through budget alignment, as was done with the $ 1.9 trillion pandemic relief bill passed without a single GOP vote.
What Biden’s New Infrastructure Plan Includes
According to the plan presented by the US presidential administration, the package of measures for $ 2 trillion. will include:
$ 621 billion for the repair of highways, bridges, modernization of ports, airports and transport systems.
The plan calls for $ 174 billion by 2030 to build a national network of 500,000 EV charging stations and replace 50,000 diesel-powered public transport vehicles.
More than $ 300 billion for the modernization of water supply systems, power grids and provision of high-speed broadband Internet access.
$ 300 billion in the construction and renovation of affordable housing, as well as the construction and modernization of schools.
$ 580 billion in US manufacturing, research and development, and vocational training.
You can read a detailed plan on the White House website.