Biden details plan to rebuild $ 2 trillion infrastructure and realign economy

Washington – President Biden On Wednesday introduced a $ 2 trillion plan to overhaul and upgrade the country’s infrastructure, calling it a transformational effort that could create “the most resilient, innovative economy in the world”.

“It’s not a plan that’s around the edges,” Mr. Biden said in a speech outside Pittsburgh. “This is a once-in-a-generation investment in America.”

White House officials said the combination of the spending and tax credits proposal would cover 20,000 miles of renovated roads, repair of the nation’s 10 most economically important bridges, elimination of main pipes from the nation’s water supply and other projects. The long list was intended to create millions of jobs in the short run and strengthen American competition in the long run.

He said the plan would intensify the fight against climate change by accelerating changes to new, cleaner energy sources and help promote racial equality in the economy.

Provisions would improve wages, internet service, drinking water and traffic times, Mr. Biden said.

Costs will increase by more than 15 years in corporate tax revenue, particularly from multinationals who earn and book profits abroad. The President grew as companies that thrive in the United States as a means of prodding companies into investment and production.

Republicans are already indicating suspicion or outright opposition, with Mr. Biden appealing for support from both sides in Congress, saying “this program since we created the interstate highway system and the space race decades ago.” Anything seen or done would be the opposite of “This is the largest American jobs investment after World War II.”

Plan expenditure The president said it would take more than eight years, and the tax increase would be higher than the spending in 15 years, reducing the budget deficit. Contrary to the economic stimulus passed under President Barack Obama in 2009, when Mr. Biden was vice president, officials would not prioritize so-called shovel-ready projects in every case that could trigger rapid growth.

But even over the years, the proposal’s scale underscores how Mr. Biden took the opportunity to use federal spending to meet social and economic challenges in a way not seen in half a century. Have done

The proposal would be a two-step release of the president’s ambitious agenda to overhaul the economy and remake American capitalism, which could bear a total cost of $ 4 trillion over a decade. Mr. Biden’s Administration Names It “American Jobs Plan”, Echoing $ 1.9 Trillion Pandemic Relief Bill: Mr. Midden Signed into law this month, “American Rescue Plan.”

On Wednesday, Mr Biden said that the next phase, which he wants to pay through tax hikes on wealthier individuals, would come in a matter of weeks and would be known as the “American Family Plan”.

There has always been a bipartisan appeal to spend on roads, bridges and other material improvements to the nation’s economic foundations, but Mr. Biden’s quick opposition to the size of the plan he implemented on Wednesday and his reliance on corporate tax increases Reduced.

Republicans and business groups criticized the tax proposals, calling them nonstarters for bipartisan talks. Mr Biden acknowledged the criticism, even asking companies to pay more in taxes. And he said he would continue to work on winning Republican support for his proposal.

He said he has already spoken with Republican leader Kentucky Senator Mitch McConnell about the bill and plans to invite other Republicans to the White House as Congress turned its proposal into expanded legislation is.

Mr Biden challenged critics to offer their own proposals for the plan. He said, “I am open to other ideas.”

Mr. McConnell suggested on Wednesday that he was unlikely to support the package as proposed by the White House.

“If this mass tax increases and trillions are added to the national debt, it is unlikely,” he said.

The spending in the plan covers a wide range of physical infrastructure projects including transportation, broadband, electric grids and housing; Efforts to introduce advanced manufacturing; And officials in other industries see it as the key to the United States’ growing economic competitiveness with China.

It also includes money to train millions of workers, as well as money for initiatives to support labor unions and providers of in-home care for older and disabled Americans, while also increasing the salaries of those workers Are those who provide that care.

Many of the items in the plan are price tags that in previous administrations filled entire, ambitious bills.

Among them: a total of $ 180 billion for research and development, $ 115 billion for roads and bridges, $ 85 billion for public transit and $ 80 billion for Amtrak and freight rail. There is $ 42 billion for ports and airports, $ 100 billion for broadband, and $ 111 billion for water infrastructure – including $ 45 billion to ensure that no child drinks water from lead pipes Is not forced, which can slow down the development of children and lead to behavior and other problems. .

The plan seeks to repair 10,000 small bridges across the country, as well as one of the 10 most important financially needed fixes. It will electrify the country’s 20 percent fleet of yellow school buses. And it will spend $ 300 billion to promote advanced manufacturing, including a four-year plan to restore the country’s strategic national stockpile medicines, including vaccines, in preparation for future epidemics.

In many cases, officials put those goals into the language of closing racial gaps in the economy, sometimes as a result of previous federal spending efforts, dividing communities of interstate highway development such as color or air pollution that harbor ports or Power possesses affect Black and Hispanic communities. Plants.

Officials spent $ 400 billion in part as a salute to the “underpaid and undervalued” workers in that industry, proportionate to women of color.

Mr. Biden’s pledge to tackle climate change is implicit throughout the plan. Roads, bridges and airports will be made more resilient to the effects of a warming planet affected by severe storms, floods, and fires. Spending on research and development can help breakthroughs in cutting-edge clean technology, while rebuilding millions of buildings and weather planning will make them more energy efficient.

The president’s focus on climate change, however, is on modernizing and replacing the United States’ two largest sources of planet-warming greenhouse gas pollution: cars and power plants.

It bets too much on spending to increase the use of electric cars, which today make up just 2 percent of vehicles on US highways.

The plan proposes to spend $ 174 billion to encourage the manufacture and purchase of electric vehicles by offering tax credits and other incentives to companies manufacturing electric vehicle batteries in the United States instead of China. The goal is to reduce the vehicle price tag.

The money will also fund the construction of about one and a half million electric vehicle charging stations – although experts say the number is but a fraction of what is required to make electric vehicles a mainstream option.

Mr. Biden’s plan proposes $ 100 billion in programs to update and modernize the electrical grid, to make it more reliable and less susceptible to blackouts, such as the recent devastation of Texas, while large Built more transmission lines for cities than wind and solar plants.

It proposes the creation of a “clean electricity standard” – essentially, a federal mandate that requires that a certain percentage of electricity in the United States be generated by zero-carbon energy sources such as wind, solar, and possibly nuclear power . But that mandate has to be implemented by the Congress, where the prospects for its success remain. Similar efforts to pass such a mandate have failed many times in the last 20 years.

The plan proposes an additional $ 46 billion in federal procurement programs for government agencies to purchase a fleet of electric vehicles, and $ 35 billion in research and development programs for cutting-edge, new technologies.

It calls for infrastructure and communities to be more prepared for the deteriorating effects of climate change, although the administration has so far provided some details on how it will meet that goal.

But according to a document released by the White House, the plan includes “$ 50 billion in dedicated investments to improve infrastructure”. Efforts will protect against wildfires, rising seas and hurricanes, and focus on investments that protect low-income residents and people of color.

The plan also includes a $ 16 billion program to help fossil fuel workers do new work – such as to prevent leaks at defunct oil wells and shut down retired coal mines – and a new “civilian climate” $ 10 billion for “Corps”.

Mr. Biden will reduce his spending by eliminating tax priorities for fossil fuel producers. But their tax is usually increased from corporations.

He would increase the corporate tax rate from 21 percent to 28 percent, partly due to President Donald J. Will reverse the cuts signed into law by Trump. Mr. Biden will also take a number of steps to raise taxes on multinational corporations, many of them working under the purview of taxation of profits earned abroad that were included in Mr. Trump’s tax legislation in 2017.

Those measures would include raising a minimum tax rate on global profits and eliminating a number of provisions that allow companies to reduce their US tax liability on the profits they earn and book overseas.

Mr. Biden will also add a new minimum tax on the global income of the largest multinationals, and they will accelerate enforcement efforts by the Internal Revenue Service against large companies that evade taxes. Mr. Biden said Wednesday that his proposed tax change on global income alone would increase $ 1 trillion in 15 years.

The president appealed for a sense of tax fairness in defending those plans, and he said the plan was to meet the challenge of competition from China and show the world that American democratic capitalism still works, for Americans. Will make a solid improvement in level.

“These are the investments we have to make,” he said.

Coral Davenport, Emily Cochrane And Christopher Flavell Contributed to reporting.

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