President Biden will outline his massive $3 to 4 trillion infrastructure plan Wednesday, which will create four tax increases worth around $1.8 trillion, the White House revealed.
The commander-in-chief’s “Build Back Better” proposal, a centerpiece of his post-COVID campaign message, will be split into two packages for Congress to pass.
The first, the White House said, will focus on infrastructure investments specifically.
The second will focus on funding domestic policy areas of Democratic concern, such as providing universal pre-kindergarten and tuition-free community college, as well as health care.
As for the taxes, Biden’s main priority will be to raise the corporate rate from 21 percent to 28 percent.
In addition, Biden’s proposal would impose a global minimum tax on profits from foreign organizations, increasing capital gains taxes for the wealthy, and returning to the Bush-era individual rate of 39.6 percent for those making over $400,000.
“The president has a plan to fix the infrastructure of our country,” White House press secretary Jen Psaki told reporters, “And he has a plan to pay for it.”
Psaki was asked for more details on the proposal at Tuesday’s briefing, specifically whether the plan included “shovel-ready projects that could get underway” immediately or focused on longer-term efforts.
“The speech tomorrow is about making an investment in America, not just modernizing our roads or railways or bridges, but building an infrastructure of the future,” the White House press secretary began.
“So some of it is certainly infrastructure-shovel-ready projects, some of it is how do we expand broadband access, some of it is ensuring that we are addressing the needs in people’s homes and communities,” she continued, adding that Biden had “a range of components” he planned to address in his speech.
Asked about raising corporate tax rates, Psaki replied that the president “thinks it’s the responsible thing to do to propose a way to pay for that over time, and he also believes that there’s more that can be done to make the corporate tax code fair.”
“He believes that there’s more that can be done,” she continued, “to reward work not wealth, to ensure that we can invest in the future industries that are going to help all people in this country.”
The plan is almost certain to have no Republican support at first, given the price tag and their party-wide opposition to Biden’s $1.9 trillion COVID-19 relief bill.
While infrastructure, unlike much of COVID-19, has not been politicized, the spending proposals are so enormous they are unlikely to receive a warm welcome from Republicans in Congress.
Infrastructure spending, however, is largely accepted as much needed for the sake of crumbling roads and bridges nationwide, as well as the jobs it’d create for the US economy.
Democrats will likely use earmarks — provisions that allow lawmakers to pad legislation with funds for their specific pet projects — to entice Republicans to support the effort.
House and Senate Democrats initially voted to bring back earmarks earlier this year, and Republicans followed shortly after, largely concluding that they should make sure their priorities get funded as well, despite concerns about the methods.