Biden details plan to rebuild $ 2 trillion infrastructure and realign economy

    Business Inquiry

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    WASHINGTON – President Biden will unveil an infrastructure plan Wednesday that would have a $ 2 trillion price tag turned 20,000 miles into rebuilding roads, repairing the nation’s 10 most important economic bridges, lead from the nation’s water supply The elimination of pipes and service lines and a long list of other projects are intended to create millions of jobs in a short period of time and strengthen American competition in the long term.

    Biden administration officials said the proposal, which they detailed in a 25-page briefing paper and discussed in an afternoon speech by Mr. Biden in Pittsburgh, would intensify the fight against climate change by accelerating changes to new, cleaner energy sources . And will help promote racial equity in the economy.

    Officials said the plan would cost more than eight years. Contrary to the economic stimulus passed under President Barack Obama in 2009, when Mr. Biden was vice president, officials would not prioritize so-called shovel-ready projects in every case, which could speed up development quickly.

    But even over the years, the proposal’s scale underscores how Mr. Biden took the opportunity to use federal spending to meet social and economic challenges not seen in half a century is. Officials said that, if approved, spending in the plan would end decades of stagnation in federal investment in research and infrastructure – and government investment in those areas as part of the economy since the 1960s Will return

    The proposal would be a two-step release of the president’s ambitious agenda to overhaul the economy and remake American capitalism, which could cost a total of $ 4 trillion over the course of a decade. Mr. Biden’s administration named it the “American Jobs Plan”, echoing the $ 1.9 trillion pandemic relief bill that was signed the “American Rescue Plan” this month.

    The “American Jobs Plan,” White House officials wrote in a detail document, “in a way we would not invest in America because we built interstate highways and won the Space Race.”

    While spending on roads, bridges and other material improvements to the nation’s economic foundations has always had bipartisan appeal, Mr. Biden’s plan is sure to attract intense Republican opposition, both for its broad size and reliance on corporate tax Increases to pay for it. .

    Administration officials said the plan included an increase in tax – an increase in the corporate tax rate and a range of measures to allow multinationals to tax those monies and make bookings overseas – to fully offset the cost of spending programs. It will take 15 years to finish.

    The spending in the plan covers a wide range of physical infrastructure projects including transportation, broadband, electric grids and housing; Efforts to introduce advanced manufacturing; And officials in other industries see it as the key to the United States’ growing economic competitiveness with China. It also includes money to train millions of workers, as well as money for initiatives to support labor unions and providers of in-home care for older and disabled Americans, while also increasing the salaries of those workers Are those who provide that care.

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    Credit …Alyssa Schucker for The New York Times

    Many of the items in the plan are price tags that in previous administrations filled entire, ambitious bills.

    Among them: a total of $ 180 billion for research and development, $ 115 billion for roads and bridges, $ 85 billion for public transit and $ 80 billion for Amtrak and freight rail. There is $ 42 billion for ports and airports, $ 100 billion for broadband, and $ 111 billion for water infrastructure – including $ 45 billion to ensure that no child drinks water from lead pipes Is not forced, which can slow down the development of children and lead to behavior and other problems. .

    The plan seeks to repair 10,000 small bridges across the country, as well as one of the 10 most important financially needed fixes. It will electrify the country’s 20 percent fleet of yellow school buses. It will spend $ 300 billion to promote advanced manufacturing, including plans to restructure the country’s strategic National Stockpill of Pharmaceuticals, including vaccines, in preparation for future epidemics.

    In many cases, officials put those goals into the language of closing racial gaps in the economy, sometimes as a result of previous federal spending efforts, dividing communities of interstate highway development such as color or air pollution that harbor ports or Power possesses affect Black and Hispanic communities. Plants.

    Officials spent $ 400 billion in part as a salute to the “underpaid and undervalued” workers in that industry, proportionate to women of color.

    Mr. Biden’s pledge to tackle climate change is implicit throughout the plan. Roads, bridges and airports will be made more resilient to the effects of a warming planet affected by severe storms, floods, and fires. Spending on research and development can help breakthroughs in cutting-edge clean technology, while rebuilding millions of buildings and weather planning will make them more energy efficient.

    The president’s focus on climate change, however, is on modernizing and replacing the United States’ two largest sources of planet-warming greenhouse gas pollution: cars and power plants.

    A decade ago, Mr. Obama’s Economic Incentive Plan spent nearly $ 90 billion on clean energy programs aimed at jump-starting the nation’s nascent renewable electric and electric vehicle industries. Mr. Biden’s plan now proposes to spend more volume on programs that he hopes will take those technologies completely mainstream.

    It bets too much on spending to increase the use of electric cars, which today make up just 2 percent of vehicles on US highways.

    The plan proposes to spend $ 174 billion to encourage the manufacture and purchase of electric vehicles by offering tax credits and other incentives to companies manufacturing electric vehicle batteries in the United States instead of China. The goal is to reduce the vehicle price tag.

    The money will also fund the construction of about one and a half million electric vehicle charging stations – although experts say the number is but a fraction of what is required to make electric vehicles a mainstream option.

    Mr. Biden’s plan proposes $ 100 billion in programs to update and modernize the electrical grid, to make it more reliable and less susceptible to blackouts, such as the recent devastation of Texas, while large Built more transmission lines for cities than wind and solar plants.

    It proposes the creation of a “clean electricity standard” – essentially, a federal mandate that requires that a certain percentage of electricity in the United States be generated by zero-carbon energy sources such as wind, solar, and possibly nuclear power . But that mandate has to be implemented by the Congress, where the prospects for its success remain. Similar efforts to pass such a mandate have failed many times in the last 20 years.

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    Credit …Johnny Milano for the New York Times

    The plan proposes an additional $ 46 billion in federal procurement programs for government agencies to purchase a fleet of electric vehicles, and $ 35 billion in research and development programs for cutting-edge, new technologies.

    It calls for infrastructure and communities to be more prepared for the deteriorating effects of climate change, although the administration has so far provided some details on how it will meet that goal.

    But according to a document released by the White House, the plan includes “$ 50 billion in dedicated investments to improve infrastructure”. Efforts will protect against wildfires, rising seas and hurricanes, and focus on investments that protect low-income residents and people of color.

    The plan also includes a $ 16 billion program to help fossil fuel workers do new work – such as to prevent leaks at defunct oil wells and shut down retired coal mines – and a new “civilian climate” $ 10 billion for “Corps”.

    Mr. Biden will reduce his spending by eliminating tax priorities for fossil fuel producers. But their tax is usually increased from corporations.

    He Will increase the corporate tax rate to 28 percent from 21%, partly due to President Donald J. Will reverse the cuts signed into law by Trump. Mr. Biden will also take a number of steps to raise taxes on multinational corporations, many of them working under the purview of taxation of profits earned abroad that were included in Mr. Trump’s tax legislation in 2017.

    Those measures would include raising a minimum tax rate on global profits and eliminating a number of provisions that allow companies to reduce their US tax liability on the profits they earn and book overseas.

    Mr. Biden will also add a new minimum tax on the global income of the largest multinationals, and they will accelerate enforcement efforts by the Internal Revenue Service against large companies that evade taxes.

    Administration officials this week hoped the plan could attract bipartisan support in Congress. But Republicans and business groups have already attacked Mr. Biden’s plans to spend with increased corporate taxes, which he says will hurt the competition of American companies. Administration officials say the move will push companies to keep profits and employment in the United States.

    Joshua Bolton, president and chief executive of Business Roundtable, a powerful group representing top business executives in Washington, said Tuesday that his group “opposes the increase in corporate tax as payment for infrastructure investment.”

    “Speakers should avoid creating new hurdles in job creation and economic growth,” Mr. Bolten said, “especially during recovery.”

    Coral Davenport And Christopher Flavell Contributed to reporting.

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