PITTSBURGH, April 1, 2021 (BSS/AFP) – President Joe Biden on Wednesday
unveiled a $2 trillion infrastructure plan aimed at modernizing America’s
crumbling transport network, creating millions of jobs and delivering a
“once-in-a-generation” investment that will enable the country to best China
on the global economic stage.
Biden compared his “transformational” plan to the ambitious US space
program of the 1960s, saying it would boost the livelihoods of poor and
middle-class Americans, take aim at global warming, and be funded by
increased taxes on large companies and the rich.
“Today I’m proposing a plan for the nation that rewards work, not just
rewards wealth. It builds a fair economy that gives everybody a chance to
succeed. It’s going to create the strongest, most resilient, innovative
economy in the world,” Biden said.
“It’s a once-in-a-generation investment in America, unlike anything we’ve
seen or done since we built the interstate highway system and the space race
decades ago.”
The plan called for sweeping upgrades to transportation,
telecommunications and energy infrastructure, which the US leader said was
both about revitalizing an economy weakened by the Covid-19 pandemic and
restoring its global competitiveness.
“We can’t delay another minute. It’s long past due,” he said in
Pittsburgh.
“The rest of the world is closing in and closing in fast — we can’t allow
this to continue.”
– Trillions in spending –
Biden’s infrastructure plan — the second massive spending initiative of
his 10-week old administration, after the $1.9 trillion short-term Covid
rescue bill passed earlier this month — faces tough tests in a Congress
worried about soaring deficits.
But it also seeks to address crumbling bridges, roads and other public
works around the country that successive administrations have failed to take
on.
In doing so, it would expand the role of the government in the US economy
to levels not seen in decades.
“In fact, it’s the largest American jobs investment since World War II. It
will create millions of jobs, good-paying jobs,” Biden said.
Biden also stressed that it would reward “hard-working” Americans instead
of the wealthy of Wall Street, countering an economy that had become
“distorted and unfair,” particularly under his predecessor Donald Trump.
“When Trump’s tax bill passed, 83 percent of the money went to the top one
percent,” he said.
“This is not to seek retribution. This is about opening opportunities for
everybody else. Here’s the truth: We all do better when we all do well.”
– Taxing the rich –
He proposed to fund it by raising taxes on companies and rich Americans
whom he said don’t pay their fair share.
Taxes will rise on Americans earning more than $400,000 a year, and the
corporate tax ceiling will rise to 28 percent from 21 percent.
“I have nothing against millionaires and billionaires. I believe in
American capitalism,” he said.
However, he said, “the biggest companies in the world, including Amazon…
pay not a single solitary penny in federal income tax” because of corporate-
friendly loopholes.
“That’s just wrong.”
Biden’s speech fired the starting gun on what is expected to be a bitter
battle in Congress, where the Democrats hold only a narrow majority and will
face strong opposition from Republicans, who have denounced the plan as
excessive government spending.
Senate Republican leader Mitch McConnell called the plan a “Trojan horse”
for the extreme left, with higher taxes and support for unions.
“Our nation could use a serious, targeted infrastructure plan,” he said in
a statement.
Biden’s plan, he said, is just “the latest liberal wish-list” and a “major
missed opportunity.”
Business groups blasted Biden’s intention to have them fund it.
“We need a big and bold program to modernize our nation’s crumbling
infrastructure and we applaud the Biden administration for making
infrastructure a top priority,” the powerful US Chamber of Commerce said in a
statement.
“However, we believe the proposal is dangerously misguided when it comes
to how to pay for infrastructure.”
Trump, who spoke of revitalizing US infrastructure but made no headway in
Congress, said Biden’s tax hike would hurt the economy and “decimate US
manufacturing.”
– Need to woo Republicans –
The coming months will test the negotiating skills of Biden, a veteran
Washington dealmaker, to the limit, and the chances of his infrastructure
plan becoming law remain uncertain.
Even though Republicans refused to vote for his Covid-19 rescue plan,
Biden said he was confident some would support the infrastructure program,
and that he was ready to negotiate with them.
“I don’t think you’ll find a Republican today in the House or Senate …
who doesn’t think we have to improve our infrastructure. You know, China and
other countries are eating our lunch,” he said.
“We will have a good-faith negotiation,” he said. “But we have to get it
done.”