WASHINGTON – President Biden intends to pay a $ 2 trillion package of infrastructure spending that he will propose Wednesday with a substantial increase in corporate taxes, people reported on the plan on Tuesday.
The scale of the infrastructure program – one of the most ambitious efforts in generations to increase the country’s sloping roads, bridges, rail lines and utilities – is so large that it has to pay 15 years of high taxes on corporations to pay it for eight years Would require spending, he said.
Despite his ambitious programs, Mr. Biden vowed that his long-term economic agenda would not move forward into a growing national debt. But the fact is that his proposed tax hike will not cover his spending in the same period, reflecting his larger goals and the challenge of balancing the deficit.
Mr. Biden’s proposals include efforts to increase the corporate tax rate from 21 percent to 28 percent and to force multinational corporations to give more profits to the United States in the tax they earn and book overseas . President Donald J. Under Trump, the corporate tax rate was cut from 35 percent to 21 percent.
The new plans come on top of the $ trillion incentive plan. Mr. Biden signed into law this month that was financed solely by borrowing and passed with no Republican support. The events reflect Mr. Biden’s campaign promises in recent years and a left-wing change in his party.
If their entire set of proposals became law, they would mark a new era of ambitious federal spending to address social and economic problems. His epidemic of passing Congress has risen amid an epidemic, with lawmakers approving record amounts of government spending to save the economy from recession.
Mr. Biden will conduct his infrastructure plan in an afternoon speech in Pittsburgh. It is the first step in a two-part agenda to eliminate American capitalism, fight climate change, and attempt to improve the productivity of the economy.
Together, those two proposals could cost as much as $ 4 trillion between spending increases and tax incentives. The second phase of the proposals is expected to include a tax increase on high-earning individuals.
Spending in the first phase of Mr. Biden’s plan includes a wide range of investments in physical infrastructure, including upgrades to highways, large-scale transit and electric vehicle charging systems and water pipes, electric grids and veteran hospitals. It also includes a major increase in federal research and development spending and efforts to provide home-based care to older and disabled Americans.
The second step, which officials have suggested will come next month, will mean spending and tax credits for what liberal economists call human infrastructure. It includes measures to assist the poor, paid leave for workers and reduce the cost of child care and help women work and earn more.
The proposal to pay for that second step includes a tax increase on high-income individuals and the rich, such as an increase in the top marginal income tax rate from 37 percent to 39.6 percent.
The details of those proposals are largely in line with the basic amenities plan that administration officials presented to Mr. Biden last week.
Those familiar with internal administration documents and plans suggest that the first phase will include $ 625 billion for roads, bridges, transit, rail, ports, and electric vehicle charging stations, as well as $ 25 billion for the federal government’s infrastructure Will be included.
That phase would also include billions of dollars for utilities, water distribution systems, rural broadband, labor training, advanced manufacturing, and research and development.
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The first package would now include hundreds of billions of dollars to support home-based care for older and disabled Americans, a change from plans drawn earlier this month. That innings was reported by The Washington Post.
An unusual 15-year window for tax hikes to compensate spending could help Democrats if they try to advance Mr. Biden’s plan through budget restructuring, a parliamentary process that would have given them 60 imposed by Senate filibusters Will allow to bypass the need for votes. And pass the plan with only Democratic votes.
The process begins with the passage of a budget proposal, which typically includes 10 years of taxes and expenses. But Democrats can extend the proposal to cover 15 years, allowing Mr. Biden’s increased revenue from corporate tax to pay spending programs ending after eight years.
Senate Republicans considered extending the budget window when they used the reconciliation process to pass more than $ 1.5 trillion in tax cuts in 2017, but they ultimately decided to stick with a 10-year window.
Mr. Biden’s aides briefed top committee leaders and staff on both sides of the plan Tuesday afternoon as rank-and-file lawmakers continued to pepper the administration with specific policy requests and ultimatums, the most comprehensive Infrastructure investment may be one of American history.
Brian C. The briefing led by Deise, one of Mr. Biden’s top economic advisors, and Louisa Terrell, head of the Office of Legislative Affairs, gave a comprehensive overview of plans for both Democrats and Republicans to invest in physical infrastructure. On the change in the corporate tax rate as the main source of payment.
There was not as much discussion of the second phase of Mr. Biden’s plan, which included policies aimed at addressing disparities and supporting American families, according to three people who revealed details of the discussion on condition of anonymity.
White House press secretary JN Sasaki told reporters on Tuesday that Mr Biden had planned for the expansion Wednesday, “about investing in the US – not only modernizing our roads or railways or bridges, but an infrastructure.” Building the future. So this is definitely infrastructure, shovel-ready projects. Some of it is: how do we expand broadband access? To make sure that we address the needs in people’s homes and communities Have been. “
Ms Psaki also suggested that Mr Biden is not locked into his preferred tax plans to fund the measure.
“People may have different ideas about how to pay for it,” she said. “We are open to hearing them. So hopefully people will bring forward ideas. “
Washington, a leading business lobbying group at the US Chamber of Commerce, welcomed the ambition of Mr. Biden’s plans for that apparent flexibility and physical infrastructure – even as officials warned that Mr. Biden’s corporate tax increases would bipartisan cooperation. May be less likely. .
“Raising corporate taxes, and others, is like a non-headquarters for Republicans. It’s like a non-starter for us,” said Ed Mortimer, the chamber’s vice president of transportation and infrastructure. But he said: “We believe the administration has opened the door for other views to be considered. This is a legislative process. Whatever the president gives is not the final bill.”
Mr Mortimer said the scope of Mr Biden’s spending proposals appears to be in line with “what we need to do to bring clean energy online, not just to fix our physical infrastructure, but to encourage innovation.” The numbers being reported are high, no doubt, but they fit the requirements. “
Many Democrats want Mr. Biden to spend even more or cut taxes for some residents of high-tax states as part of his plans. On Tuesday, Democrats in both houses were continuing to pace the White House for inclusion in the legislative package, including several letters outlining housing initiatives and requests for investment in home and community services.
Factions within the Democratic caucus will likely make the path to final approval of the package more difficult, given the party’s exceptionally thin margins in both chambers.
The three House Democrats issued a joint statement opposing any changes to the tax code, not addressing the so-called SALT cap approved in the 2017 tax overhaul, which imposed a limit on local and state taxes that Taxes can be deducted from federal income.
“We say, ‘No SLT, No Deal,'” said lawmen, Tom Suozzi, a New York representative, and Josh Gottheimer and Bill Pascrell Jr., both of New Jersey. “We will not accept any changes to the tax code that do not reinstate the SALT deduction and bring fairness back into the system.”
Liberal MPs also continued to be motivated for substantial spending. Representative Alexandria Ocasio-Cortez, a Democrat from New York, suggested on Twitter, on the heels of a $ 1.9 trillion pandemic relief package that allocated massive funds for 2021 and over the next two years that $ 2.25 trillion may be insufficient. is.
But Republicans are already eyeing such a large price tag, presumably for Democrats to use the reconciliation process to bypass them.
“It is not just about the money – it is also about the transformative policy that is being incorporated into it,” Representative Pramila Jaipal of Washington, the chairperson of the Progressive Caucus, told reporters on Tuesday. By preliminary descriptions emerging from the proposals. “We are really going to continue to move to reflect the size of the investment that we think is necessary.”