President Joe Biden is set to announce details of his infrastructure stimulus in Pittsburgh on Wednesday, with senior White House officials revealing Tuesday (30) that the infrastructure bill will be launched in the form of an eight-year, $2 trillion long-term plan, and that corporate taxes will be raised to 28 percent to cover huge government spending.
Bloomberg (Bloomberg), citing sources, reported that White House economic adviser Deese (Brian Deese) told senior members of Congress on Tuesday that Biden’s infrastructure bill would be about $2 trillion in size and would be an eight-year-long stimulus.
Another source said that in order to raise funds, the corporate tax rate will be raised from 21% to 28% for 15 years and a minimum tax will be imposed on the profits of multinational corporations.
It is reported that the Biden Administration will also promote the transformation of cities like Pittsburgh to provide more jobs. In addition to basic roads, bridges and airports, the infrastructure will also include high-speed broadband Internet access and the renewal of the long-neglected power grid to beautify the city. In addition to infrastructure, will also improve the elderly care, housing and manufacturing and construction industry development.
Biden is expected to focus on the details of the infrastructure and energy transition on Wednesday. Dean Baker, chief economist at the Center for Economic Policy Research (CEPR), said Biden’s plan could be the biggest transformation since the Great Society program of 1960.
In addition to the infrastructure bill, the Biden administration will launch the second phase of its long-term economic plan late this spring, which will then focus on early childhood Education, health care and community college education.
A Biden ally said the infrastructure plan and the care economy plan will cost far more than the $1.9 trillion New Coronavirus bailout passed earlier this month, and it is estimated that the combined budget of the two bills will be as high as $7 trillion, a huge expense that is bound to deepen the difficulty of the White House’s negotiations with Congress.
Although the White House on Monday had expressed hope that Congress could cooperate with both parties to launch the stimulus package, but Biden allies estimate that the two bills may be difficult to obtain broad bipartisan support. Politically, the Biden administration needs to pull in support from the moderate, progressive wing of the Democratic Party, and also needs to face the Republican Party and corporate groups on the tax hike issue of abuse.
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