PITTSBURGH -- President Joe Biden called for a swift use of government power to reshape the world's largest economy and counter China's rise in a$ 2 trillion+ proposal that was met with swift Republican resistance on Wednesday.
The American Jobs Plan would put corporate America on the hook for the tab as the government creates millions of jobs building infrastructure, such as roads, addresses climate change and boosts human services like care for the elderly.
It's a once-in-a-generation investment in America, unlike anything we 've seen or done since we built the Interstate Highway System and the Space Race decades ago, Biden said in unveiling the program in Pittsburgh.
He said he would never have any problems asking companies to pay the bill and is going to put an end to Amazon.com Inc and other major companies that paid little to nothing in federal taxes.
Biden's second multitrillion-dollar legislative proposal in two months of office sets the stage for a partisan clash in the U.S. Congress, where members largely agree that investments are needed but are divided on the total size and inclusion of programs traditionally seen as social services.
Another economic proposal Biden will announce in April could add a further$ 2 trillion to the price tag.
Coupled with the recently enacted$ 1.9 trillion Coronavirus relief package, Biden's infrastructure initiative would give the federal government a bigger role in the U.S. economy than it has had in generations, accounting for 20% or more of annual output.
Biden's team believes a government-directed effort to strengthen the economy is the best way to provide support to an economy threatened by the coronavirus pandemic and contend with increased competition and a national security threat posed by China.
The proposed proposal was greeted icily by majors and conservatives.
The Republican senator Mitch McConnell said the proposal was another Trojan horse for far-left demands one day after Biden called to brief the minority leader on the proposal. McConnell said that increasing taxes would be slowing the economy and halting wage growth when workers need a fast recovery.
Biden ignoring a campaign promise to raise taxes on wealthy individuals, at least for now.
The plan would instead increase the corporate tax rate to 28% from 21% and change the tax code to create loopholes that allow companies to move profits overseas, according to a 25 page briefing paper released by the White House.
Biden said the goal was not to 'target businesses but to address divisions and inequality worsened by the pandemic.
The plan would spread the cost for projects over an eight-year period and aims to pay for it all over 15 years, without adding to the country's long-term debt, the White House said.
Biden, chief policy officer at the nation's largest trade group, the U.S. Chamber of Commerce, said that while the organization shares Neil Bradley ’ s sense of urgency on infrastructure, his plan is dangerously misguided.
We strongly oppose the general tax increases proposed by the Administration, which will slow the economic recovery and make the United States less competitive globally, Bradley said.
The plan includes$ 621 billion for rebuilding infrastructure, such as bridges, highways and ports, and a historic$ 174 billion investment in the electric vehicle market that sets a target of building a nationwide charging network by 2030.
The focus of the program on liberal jobs and projects to reduce climate change would deliver long-sought goals.
Administration officials also said they hoped to address racial discrimination, for instance cutting air pollution that affects black communities near ports or power plants.
For the aging Americans and people with disabilities, Congress will be asked to invest$ 400 billion in expanding access to affordable community-based care. It is aimed at low-wage workers in this industry, who are disproportionately women of color.
There is$ 213 billion included to build and retrofit environmentally sustainable homes along with hundreds of billions to strengthen the nation's electric grid, enact nationwide high-speed broadband and rebuild the nation's drinking water systems.
Biden is moving ahead with the economic plan while attempting to deliver on promises to provide enough COVID 19 vaccines for all American adults by the end of May. The White House is also dealing with a decrease in the number of migrants on the southern border and the fallout from mass shootings back-to-back.
The plan is one part of the Better Build Back program, which the Administration aims to introduce. A second legislative package, which is being promoted as helping families, is due within weeks.
This package is expected to include the expansion of child tax benefits and family and medical insurance coverage as well as paid parental leave.
Nancy Pelosi has signaled she hopes to pass the infrastructure plan by 4 July, although that time line could easily slip as Democrats with narrow majorities in both the House and Senate races to strike a deal on the details.
The jockeying has already begun; traditional Democrats have said the package should be more targeted to moderate infrastructure projects to attract Republican votes. Liberal lawmakers want to tackle the climate change and economic inequality with resources that reflect the size of these challenges. On Tuesday, a leading liberal democrat Biden said that the proposal for Pramila Jayapal, who is currently running as a presidential candidate, was between$ 6.5 trillion and$ 11 trillion over 10 years.
Jayapal said we want a plan that goes big.