Biden will unveil a $ 2 million infrastructure plan and major corporate tax increases
Joe Biden is proposing to spend $ 2 billion on U.S. government infrastructure, along with higher corporate taxes, to spend $ 2 billion in the first phase of a $ 1 billion effort to reshape the world’s largest economy.
The White House gave details of the plan ahead of a speech by the U.S. president in Pittsburgh on Wednesday, saying it is the largest public investment program by administration officials since the creation of the interstate highway system and Space Race in the 1960s.
They come a few weeks later Congress approved it With a $ 1.9 billion tax plan to restart the U.S. economy devastated by the pandemic, Biden’s investment proposal will set the weekend for delicate negotiations on Capitol Hill, where Democrats have a large majority in both chambers.
If accepted, the White House would make a big bet that sustained injections of government funds into critical areas, with higher corporate taxes, will strengthen the economy as it emerges from the coronavirus crisis, rather than weakening it as a Republican. they are already loading.
A Biden administration official said the plan is “an important moment to prove that the United States and democracy can deliver for the people,” arguing that it will “stimulate our national imagination” and put “millions of Americans to work right now.”
The plan allocates $ 621 billion to renovations of traditional infrastructure, including major sites such as roads, bridges, public transportation networks and ports and airports.
Estimated revenue for Biden 2020 campaign proposals (over 10 years)
Payroll tax increase in high-income households $ 740 million
Corporation Tax has risen from 21 to 28 per cent $ 730 million
Minimum tax on foreign profits of U.S. companies $ 440 billion
Higher capital gains and taxes on dividends for the ultra-rich $ 370 million
Increase in personal income tax for high winners $ 310 billion
Source: Center for Tax Policy
But it will also try to focus spending on projects to help alleviate the US climate crisis by the US administration he promised to talk about it, A major change in the skepticism of former President Donald Trump.
These proposals include $ 100 billion in electricity grid modernization measures, the provision of tax credits for clean energy generation and storage, and the connection of orphaned oil and gas wells — as well as $ 213 million to make homes more energy efficient and public schools to do the same $ 100,000 million. .
Meanwhile, $ 180 billion in funds will be earmarked for research and development investments, such as Artificial intelligence and biotechnology, aimed at improving competitiveness with China. Another $ 300 billion in government spending will go to manufacturing subsidies, including support for chipmakers.
Proponents of the Biden plan have already argued that they will face chronic investment in public goods that has hurt the economy for a few decades, as critics were concerned that rising corporate taxes could be detrimental to U.S. competitiveness.
Biden wants to raise it corporate tax rate from 21 percent to 28 percent, and includes 21% of the general minimum tax on additional income, calculated country by country, “so it makes a profit in tax havens,” according to the White House. The president also wants to rule out a tax exemption on 10% of international profits and end tax preferences for fossil fuel producers. Even before Biden released his plan, he was attacked by the Business Roundtable Table, which represents the largest blue companies in Washington. tax increases in the plan.
“The business roundtable is strongly opposed to corporate tax hikes as a payment for infrastructure investment. Policy makers should avoid creating new barriers to job creation and growth, especially in times of recovery,” said Joshua Bolten, head of White House staff at George W Bush. former and President of the Business Round Table.
Biden’s spending proposal is expected to last about eight years, and corporate tax increases are expected to be spread over more than fifteen years, beyond the traditional 10-year budget window of the U.S. government. America’s deficits during that time.
Despite the high price of the road infrastructure package, the White House will complete an investment plan in the coming weeks to complement it with an additional spending measure on “nursery, health”. [and] education ”is likely to reach $ 1 million, the full amount so far More than $ 3 thousand. The second package is expected to be equated with tax increases on wealthy people, including their income, capital gains and goods.
While he is preparing to start Negotiations with Congress in both packages, Biden is competing in his party. New York Democratic lawmaker Alexandria Ocasio-Cortez said the $ 2 million infrastructure plan is “not enough” and has advocated more. But other Democrats are concerned that spending and tax hikes could be excessive, and some even call for the abolition of the state and local tax deduction limit because it would be a tax cut.