President Joe Biden recently introduced a sweeping $2 trillion USD infrastructure and jobs package in an effort to reshape the American economy, and make the most significant domestic investment into the United States in generations.
Biden wants to raise the corporate tax rate to 28 percent in order to pay for the plan. That's the percentage corporations paid before President Donald Trump's tax cuts in 2017. Biden also wants to increase the minimum tax on U.S. multinational corporations to 21 percent.
The infrastructure package includes major investments to transportation, school buildings, underground water infrastructure, broadband access, affordable homes, as well as expanding domestic production of technological and critical goods for the U.S.
The largest part of the plan focuses on American homes, school buildings, underground water infrastructure and broadband expansion.
Biden’s plan calls for spending $213 billion USD to build, preserve and retrofit more than two million affordable homes and commercial buildings.
This includes the construction and/or rehabilitation of 500,000 homes for low- and middle-income owners. An additional $111 billion USD will go toward clean drinking water, including replacement of all lead pipes and service lines.
The infrastructure bill sets aside $100 billion USD for constructing and/or modernizing public schools, while another $100 billion USD is set to be used to build high-speed broadband networks throughout the country. The goal would be for broadband to become universal for all Americans, and to drive down the costs for internet.
Additionally, another $40 billion USD will be used to improve public housing, $18 million USD for Veterans Affairs hospitals and clinics, and $12 billion USD for community college infrastructure.
The plan also calls for a massive investment in America's roadways, railways and bridges, with an added a focus on clean energy.
Biden proposed $174 billion USD — or about 28 percent of the transportation portion — on electric vehicles. That includes a network of 500,000 electric vehicle stations, using electric vehicles in bus fleets, and replacing the federal government's fleet of diesel transit vehicles with electric vehicles. It would also offer tax incentives and rebates for electric cars.
About $115 billion USD will be used to fix roads and bridges, chosen by those in most need of repair. That includes 20,000 miles of highways and roads, the 10 most "economically significant" bridges in the U.S., as well as 10,000 smaller bridges.
Another $85 billion USD is set aside for modernizing transit systems and $80 billion USD for a growing backlog of Amtrak railway repairs. Airports, ports and waterways would also receive improvements.
About $300 billion USD is earmarked for investment into manufacturing, including support for domestic production of technologies and critical goods. Around $50 billion USD will go toward semiconductor manufacturing and research.
The plan would also spend $180 billion USD on new research and development, emphasizing clean energy, fewer emissions and climate change research. That total includes $100 billion USD for worker training, and an increase of worker protection systems.
The condition of roads, bridges, schools, water treatment plants and other physical assets greatly influences an economy’s ability to function and grow. Commerce requires well-maintained roads, railroads, airports, and ports so that manufacturers can obtain raw materials and parts, and deliver finished products to consumers.
AmChamUS supports state investment in transportation, public buildings, water treatment systems, as well as other forms of vital infrastructure, which are key to creating good jobs, and promoting economic growth.
AmChamUS encourages federal and state governments to utilize healthy tax schemes that provide for the ability to finance such infrastructure investment, and to maintain equitable tax mechanisms throughout the process so as not to place unnecessary burdens on private commerce or future generations in order to finance current problems.
Comments