President Joe Biden on Wednesday (March 31) unveiled his $2.25 trillion infrastructure plan, which aims to invest in U.S. infrastructure and climate change, at the same time as the Biden administration plans to raise the corporate tax rate to 28 percent, which the White House says will pay for the new investments over 15 years.
The U.S. media, The Hill, believes there are five areas of concern following the enactment of Biden’s new deal.
Progressives urge increased scale of investment
Democratic progressives argue that the bill is still not large enough to address climate infusions, such as the funding requirements of the Green New Deal, yet.
The coalition of progressive organizations that make up the Green New Deal network supports a $10 trillion climate agenda.
Republicans Unlikely to Provide Support
Republicans are strongly opposed to raising the corporate tax rate. The bill is still expected to have difficulty gaining support from Republican lawmakers.
Biden’s proposal calls for paying for the legislation by raising the corporate tax rate from 21 percent to 28 percent over 15 years. The proposal has yet to include other Democrat ideas for raising taxes, such as a wealth tax on certain Americans or an increase in the capital gains tax.
The White House has insisted that Biden’s proposal is a starting point and that the administration will seek members of Congress from both sides to determine how best to move the bill forward, though hopes are slim. The Biden administration’s $1.9 trillion Communist Party of China virus epidemic relief plan, introduced this year, chose to bypass Republicans in its implementation.
Plan goes far beyond road and bridge infrastructure
The White House says the new plan will repair 20,000 miles of roads and 10,000 bridges, but the true scope of the plan is much larger.
As an example, the plan invests $174 million to grow the electric vehicle market, incentivizing states and local governments to build a nationwide network of 500,000 electric vehicle chargers over the next decade.
Biden also proposed $15 billion in funding for organizations such as eligible black colleges and other minority-serving institutions to establish centers of excellence at those institutions, among other programs.
Biden Bets on Big Government
The Biden administration compared the legislative initiative to former President Franklin D. Roosevelt’s New Deal, an approach designed to address economic insecurity and boost private sector growth through big government programs during the economic crisis.
After launching the $1.9 trillion Communist China Virus (COVID-19) spending plan, Biden is once again working to reimagine how government and the economy interact with his $2.25 trillion infrastructure bill.
The proposal would address many different aspects of American life. In addition to investing in traditional infrastructure projects such as roads, bridges and broadband, the bill would direct government funds to electric vehicles, green energy projects, the health care sector, child welfare, senior care and the development of future technologies.
Biden treats big spending bill as stopgap measure
In a speech in western Pennsylvania, Biden declared that the future of the United States depends on the government’s plan to reshape the economy and urgently requested that this spending bill be pursued as soon as possible.
The White House confirmed that following Wednesday’s announcement, Biden will introduce a roughly equal-sized spending bill in mid-April to invest in other domestic progressive programs such as child care and education.
To get there, the Biden administration will roll back the 21 percent corporate tax rate set by Trump and congressional Republicans in 2017 and raise the corporate tax to 28 percent, higher than the 25 percent corporate tax imposed by the Beijing government.
The U.S. government is also preparing to impose a global minimum tax of 21 percent for the purpose of avoiding companies shifting profits overseas to avoid taxation. Tax laws will also be updated so that U.S. companies cannot merge with foreign companies and cannot avoid taxes by moving their headquarters overseas.
On Wednesday (March 31), Trump’s former president’s office released an official statement condemning the Biden administration’s aggressive tax hikes saying, “…… Trillions of dollars in tax increases are a strategy of complete economic surrender. As our nation recovers from the effects of a global pandemic, sacrificing good-paying American jobs is the last thing our citizens need” and “If you create jobs in America and hire American workers, you will pay more in taxes, but if you close your factories in Ohio and Michigan, fire American workers and move all production to Beijing and Shanghai, you will pay less tax. That’s the opposite of America First – it’s putting America last.”
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