Biden unveils ‘once in a generation’ spending plan

Biden unveils 'once in a generation' spending plan
President Joe Biden called for raising the corporate tax rate from 21% to 28%. Source: Reuters
2 Min Read

Daily US Times: US President Joe Biden has announced trillions in spending plan aimed at re-igniting America’s economic growth by tackling climate change and upgrading its crumbling infrastructure.

The $2.3tn proposes spending plan would direct billions to initiatives such as eliminating lead water pipes and charging stations for electric vehicles.

The spending would be partially offset by raising taxes on businesses and those plans have already roused fierce opposition.

Powerful business lobby groups including the Business Roundtable and Chamber of Commerce said they supported investments but would oppose tax increases while Republicans have called the rises “a recipe for stagnation and decline”.

The pushback is an indication of the tough fight ahead for the plan, which needs approval from Congress.

Biden’s plan calls for investing more than $600bn in infrastructure, including modernising roads, repairing crumbling bridges and replacing rail cars and buses.

Billions more would be devoted to initiatives like upgrading affordable housing, expanding high-speed broadband, improving veterans hospitals and providing incentives for manufacturing and technology research.

The spending plan calls for money to be directed to rural communities and communities of colour, including establishing a national climate-focused laboratory affiliated with an historically black university.

The spending would roll out over eight years.

The White House said in a statement that tax increases would offset the cost over 15 years.

President Joe Biden called for raising the corporate tax rate from 21% to 28%, a move that would partially undo cuts the US passed in 2017.

You may read: US and allies criticize WHO coronavirus report