Biden Presents $2.25 Trn Jobs Plan

U.S. President Joe Biden proposed on Wednesday his plan to renovate American infrastructure with public expenditure exceeding $2.25 trillion, in what he calls “a once in a generation investment.”

Following the passing of his $1.9 trillion stimulus package, named the American Rescue Plan, Biden presented the “American Jobs Plan” with the aim of creating millions of good-paying jobs, investing in renewable energy, and putting the U.S. in a position to win the global competition with China in the upcoming years.

The plan aims at building the strongest resilient innovative economy in the world, said Biden, as he explained how this is the largest job investment in the U.S. since World War II, comparing it to building the interstate highway system and the space race.

To finance the huge spending, the administration plans to raise taxes, increasing the corporate tax rate to 28%, as it was during the Obama administration before Trump cut it to 21%.

Once again, Biden promised that anyone making less than $400,000 a year will not see an increase in their federal tax rate.

Around $621 billion will be allocated to transportation infrastructure, such as rail corridors and transit lines, including around 10,000 bridges, as well as ports and highways.

In addition, a total of $174 billion will invested in supporting electric vehicles with the target of covering the U.S. cost to cost with an EV charging network by the year 2030.

Providing cleaner water and high-speed broadband will account for $650 billion of the plan, while $580 billion will be directed towards manufacturing, including $180 billion for research and development.

Furthermore, $400 billion will finance expanding community care for the elderly and the disabled.

The plan is expected to face large opposition from the Republicans in Congress, however, Democrats may opt once again to using the reconciliation option to pass the needed legislation with a simple majority in the Senate without the support of any members of the Republican Party.

Earlier, Senate Minority Leader Mitch McConnell said that rising taxes will result in “killing jobs and slowing wage growth when workers need a fast recovery.”

The plan will result in an increased role by the American government in the economy once completed, as it will dominate 20% of annual output.