U.S. House Republican Leader Kevin McCarthy speaks during his weekly news conference on Capitol Hill in Washington, March 18, 2021.
U.S. House Republican Leader Kevin McCarthy (R-Calif.) said Sunday (May 9) that Biden’s infrastructure plan risks triggering “severe inflation” that would “tax” communities earning less than $400,000 a year. This will have a “taxing” effect on those earning less than $400,000 a year.
Although Biden and his deputies have said that they will not raise taxes on people earning less than $400,000 a year. However, his two infrastructure proposals are massive, worth about $4 trillion, and some economists have warned that the move threatens to trigger serious inflation.
In an interview with the WABC radio program, McCarthy said, “When the president talks about not raising taxes on people under $400,000, that’s a lie. You see the inflation that he’s creating every day. That’s the Biden Tax (Biden Tax).”
McCarthy accused the trillion-dollar bills of “nothing but waste, fraud, abuse, and worse, corruption. Citing one of Biden’s infrastructure proposals, only about 6 percent of the money would actually be spent on facilities.
McCarthy noted that while the demand for electric vehicles in the U.S. is still slow, there is a provision in the infrastructure plan that calls for significant government investment in the electric vehicle industry. “Less than 3 percent of the U.S. population now has an electric vehicle, and they (electric vehicle-related industry players) want the government to subsidize it. But what the authorities want to do is raise utility rates and tax all Americans.” He said.
According to the White House, the infrastructure plan would cost about $174 billion to “win the electric vehicle market” and “enable automakers to stimulate domestic supply chains from raw materials to components, retool factories to increase (the U.S. electric vehicle industry’s) global competitiveness, and support (the employment of) American workers. employment of) American workers.”
Biden said last week that he would raise the corporate tax rate from 21 percent to 25-28 percent to pay for the infrastructure plan and proposed a tax on people earning more than $400,000 a year. In Congress, Republicans and some Democrats, such as Sen. Joe Manchin (D-W.Va.), are opposed to it.
Biden’s package would include traditional infrastructure projects (repairing or building roads and bridges), funding the expansion of broadband Internet, renovating waterways, and enhancing care for children and the elderly.
Republicans, on the other hand, have proposed a smaller $568 billion infrastructure plan and have cut provisions for climate change proposals and care for people with disabilities.
The White House said Biden will meet with some Republicans in the coming week, including: Senate Minority Leader Mitch McConnell.
According to the Wall Street Journal, McConnell made it clear last week, “I hope that if the president can’t convince the House, which is controlled by a Democratic majority, and the Senate, which is split 50-50 in seats, to pass his $4.1 trillion bill, then we can sit down and have a serious conversation.”
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