Proposed tax hikes include increasing corporate rate from 21% to 28%
President Biden is rolling out a $2.25 trillion plan on Wednesday that would overhaul U.S. infrastructure such as roads and bridges, pour billions of dollars into retrofitting housing and transit with an eye toward climate change, and create new jobs for caregivers of the elderly and disabled, among other priorities.
The proposal, dubbed the “American Jobs Plan,” is supposed to be funded in part by hiking the U.S. corporate tax rate from 21% to 28%. The administration estimated that the overall package will generate millions of jobs.
The White House estimated that the spending, most of which is doled out over an eight-year period, would be paid for over a 15-year period if Congress passes the package alongside the president’s desired tax increases.
“We think that these are investments that, as a country, we cannot afford not to make,” an administration official told reporters on a call previewing the plan. “At the same time, the president feels that the right, responsible thing is to identify how we could pay for these investments across time.”
The proposal released Wednesday is the first part of Mr. Biden’s next major domestic legislative priority after Congress approved his $1.9 trillion coronavirus relief package earlier this month.
A second package that includes additional spending on health care, child care and what some advocates call “human infrastructure” is supposed to be released in the coming weeks.
Mr. Biden is set to travel to Pittsburgh, Pennsylvania, on Wednesday afternoon to talk in more detail about the first part of the plan, which includes: