Amnon Jakony (Jay Arts Holdings)
UPDATED 6:55 PM PT – Wednesday, March 31, 2021
Joe Biden has unveiled his massive infrastructure plan, projected to cost roughly $2 trillion in taxpayer money. Dubbed the American Jobs Plan, the details of it were made public during an event in Pittsburgh, Pennsylvania on Wednesday.
“So today, I’m proposing a plan for the nation that rewards work, not just rewards wealth,” Biden said. “That builds a fair economy and gives everybody a chance to succeed, and it’s going to create the strongest, most resilient, innovative economy in the world.”
The plan’s largest proposed investment is $621 billion devoted to transportation, with a heavy focus on transitioning to so-called “green energy,” followed by $400 billion to home care services, $300 billion to manufacturing and $213 billion to housing.
It would also allocate funds to digital infrastructure, schools and workforce development.
The American Jobs Plan will create millions of good paying jobs, grow our economy, make us more competitive, promote our national security interests, and put us in a position to win the global competition with China. pic.twitter.com/yaVX6MDB3M
— President Biden (@POTUS) March 31, 2021
Biden claimed the package would modernize the American economy and boost job creation.
“It will create millions of jobs, good paying jobs, it will grow the economy, make us more competitive around the world, promote our national security interests, and put us in position to win the global competition with China in the upcoming years,” Biden stated.
Yet despite Biden’s grandiose claims of an American revival brought about by government spending, conservatives have balked at the huge price tag attached to his plan, and how he intends to pay for it.
The package proposed a reversal of the Trump administration’s 2017 cut to the corporate tax rate, raising it from 21 to 28 percent. It would introduce a minimum tax of 15 percent on book income, the income reported by companies to their investors rather than the IRS. Additionally, it would increase the global minimum tax on international subsidiaries of U.S. corporations from 13 to 21 percent, regardless of where their profits were made.
This last point is notable, as it creates a strong incentive for U.S. companies to reincorporate abroad and ultimately bypass the higher tax rates the Democrat administration wishes to levy from them.
This has prompted leading Republicans to heavily criticize Biden’s plan for using infrastructure as a smokescreen to sneak in tax hikes favored by Democrat politicians.
“I think the Trojan horse will be called infrastructure, but inside the Trojan horse will be all the tax increases that Senator Scott and others have talked about,” Senate Minority Leader Mitch McConnell (R-Ky.) said. “They want to raise taxes across the board and the only way I think they could pull that off would be through a reconciliation process. They have one more of those available to them.”
Meanwhile, just ahead of the plan’s unveiling, President Trump issued a dire warning about what the American Jobs Act would do to the country were it to become law.
NEW Trump statement slamming Biden's infrastructure plan and more: pic.twitter.com/aivBm7ieuy
— Henry Rodgers (@henryrodgersdc) March 31, 2021
The plan is being branded by Democrats as an effort to shore up the American economy after the pandemic, but according to President Trump, its proposed tax hikes are more likely to result in job losses and widespread industrial decline.
If the plan becomes law, President Trump stated “China will win, the Washington politicians and government bureaucrats will win, but hardworking American families will lose.”