U.S. President Joe Biden at his first news conference in the East Room of the White House in Washington, March 25, 2021.
President Joe Biden will unveil a $2.3 trillion infrastructure plan in Pittsburgh on Wednesday (March 31) to fix roads and bridges, expand broadband Internet access and propose a massive corporate tax increase to pay for the plan. Republicans have condemned the plan, saying it would kill jobs and exacerbate the U.S. debt problem.
Highlights of the infrastructure plan
650 billion of the $2.3 trillion infrastructure plan would be spent on roads, rail and transit. The plan would modernize 20,000 miles of highways and roads, ten major “economically significant bridges” and 10,000 other bridges.
The plan includes $20 billion for road safety programs; $20 billion for reconnecting communities divided by highway projects.
The plan doubles federal funding for public transportation to $85 billion and invests $80 billion in Amtrak.
The plan also includes $25 billion for airport construction, $17 billion for inland waterways, coastal ports and ferries, and investments to clean up port air pollution.
Another $25 billion will be spent on costly transportation projects. $174 billion will be used to promote the development of electronic vehicle manufacturers.
650 billion for “Home infrastructure”. These funds will be used for broadband, clean water, the electric grid and quality housing. In addition, the program will replace 100 percent of lead water pipes.
Another $100 billion would be spent on upgrading and building new public schools; $400 billion would be spent on the care economy; and $580 billion would be spent on manufacturing, training and research.
Corporate Taxes Would Increase Significantly Raising Job Concerns
This infrastructure plan would dramatically increase corporate taxes in order to access funding sources. This includes raising the U.S. corporate tax to 28 percent from the 21 percent set by the Trump administration’s 2017 tax bill, eliminating all subsidies for the fossil fuel industry, and establishing a minimum tax rate on the income companies use to report profits to investors.
Democrats welcomed Biden’s infrastructure plan. Democratic Rep. Brenda Lawrence tweeted that Biden’s plan is transformative and includes building roads, bridges and transportation systems; providing safe, clean drinking water; abolishing lead pipes; and creating good-paying jobs.
But industry players worry that raising taxes for businesses could hinder job creation and spur economic growth.
“Policymakers should avoid creating new barriers to job creation and economic growth, especially during an economic recovery.” Joshua Bolten, president and CEO of the Business Roundtable, said Tuesday.
Republicans fear Biden’s use of infrastructure plan to promote “Green New Deal”
Biden’s plan would face obvious obstacles. Republicans oppose large tax increases, and moderate Democrats and Republicans have expressed concern that big government spending could trigger excessive debt problems.
“They want to do another massive spending bill, which would include additional debt and also include significant tax increases,” Senate Minority Leader Mitch McConnell (R-Ky.) said at a local event Tuesday (March 30), “I think this new Democratic administration is headed in the wrong direction.”
Republican Sen. Kevin Cramer (R-N.Y.) said he is willing to work with Democrats on certain measures, such as expanding the Highway Trust Fund or loosening regulations to lower the cost of transportation projects, but added that he believes Biden’s infrastructure plan actually goes beyond infrastructure, The Wall Street Journal reported.
He worries that the plan will be used as a tool to achieve partisan goals for Democratic policies such as climate and taxes.
Republicans have said they hope the package will focus on core infrastructure needs such as roads and bridges and how to pay for them, rather than being filled with elements from The Green New Deal or Biden’s climate change agenda.
Last week, Republicans said they oppose the cost of the Biden Administration‘s infrastructure proposals and warned against removing core transportation infrastructure priorities from the plan, focusing instead on climate change and a so-called “social justice agenda.
Republican U.S. Rep. Ken Buck tweeted Wednesday (30) that Biden’s infrastructure plan would bring tax hikes; increase the national debt; implement (Democratic) Green New Deal policies; eliminate jobs; and advance the left’s radical racial agenda.
Republican Rep. Michelle Fischbach also tweeted Wednesday that President Biden’s “infrastructure” plan would raise taxes, kill jobs and create a massive new bureaucracy to fund their Green New Deal programs. Fischbach also said Democrats want trillions in new spending and will raise taxes on families, small businesses, farms and retirees to make it happen.
Republican Sen. John Thune (R-S.D.) had previously expressed concern at a hearing about the debt problems created by the Biden administration’s increased spending. He said, “When are we going to reach the tipping point where things start to fall apart? That’s what I’m really concerned about, and no one from either party is really talking about that.”
Some economists are concerned about the risk of debt in the United States. They argue that high levels of debt could stifle economic growth and lead to more debt.
“We should be very worried,” Atif Mian, an economics professor at Princeton University, previously told The Washington Post, “that we’re talking about debt levels that are certainly unprecedented in modern history or in history, and we’re definitely at a tipping point. ”
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