Biden’s infrastructure plan will help build ‘modern American economy’: Rep. Garamendi
Rep. John Garamendi, D-Calif., discusses President Biden’s infrastructure plan and tax proposal.
Sen. Mitch McConnell blasted President Biden's $2 trillion infrastructure plan Wednesday, claiming the proposal is a “Trojan horse” for major tax increases.
Speaking in Erlanger, Kentucky, on Wednesday, the GOP Leader raised concerns about the level of the national debt and reversing the corporate tax cut that Republicans passed in 2017.
“It’s like a Trojan horse,” McConnell told reporters. “It’s called infrastructure, but inside the Trojan horse it’s going to be more borrowed money, and massive tax increases on all the productive parts of our economy.”
WHAT'S IN BIDEN'S $2.25T INFRASTRUCTURE AND TAX PROPOSAL?
Biden’s proposal to fix the country’s infrastructure is to cost $2 trillion over eight years, and be paid for over 15 years by raising the corporate tax rate from 21% to 28%.
McConnell signaled he’s unlikely to support Biden’s plan given the tax increases and additional spending. McConnell has previously opposed Biden’s other major legislative initiative, the $1.9 trillion coronavirus relief bill, which passed with no GOP support.
BIDEN'S $2T INFRASTRUCTURE PLAN TO BE FUNDED BY CORPORATE TAX HIKE PROPOSAL
Dubbed the American Jobs Plan, the White House said Biden’s plan is “once-in-a-century capital investment” in U.S. infrastructure that will create “millions” of good-paying jobs and position America to “out-compete” China by spending about 1% of GDP per year over the course of 8 years.
Among the key tenets of the plan are modernizing 20,000 miles of highway, repairing 10,000 small bridges and 10 economically significant bridges, eliminating all lead pipes in drinking water systems, expanding access to high-speed broadband, modernizing schools and upgrading veteran’s hospitals.
The plan also aims to create better-paying jobs for care workers and allocate $100 billion to workforce development programs targeted at underserved groups and students.
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Overall, the administration intends to spend around $650 billion on revamping bridges and roads, $300 billion on housing infrastructure, $300 billion on reviving U.S. manufacturing, $400 billion on care for the elderly and disabled, $400 billion on clean-energy credits, as well as an unspecified amount on broadband, water systems and other measures.
In order to pay for this legislation, Biden proposed what he has called the Made in America Tax Plan, which would raise the corporate tax rate to 28% from 21%. It would also increase the minimum tax on multinational corporations to 21% and “calculate it on a country-by-country basis so it hits profits in tax havens,” alongside several other efforts to eliminate perceived loopholes in the corporate tax code.
Fox Business’ Brittany De Lea and Caroline McKee contributed to this report.
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