On Wednesday, US President Joe Biden will present his plans for a more comprehensive investment in infrastructure. A portion of the funding will come from increased taxes.
The US president has already begun comprehensive measures to rebuild the economy in the wake of the Corona epidemic, but now plans to spend more to strengthen infrastructure.
The first part of the two-part plan is titled “The American Employment Program” and is expected to cost $ 2,000 billion, equivalent to more than $ 17,000 billion.
The ambitions are not slim: to create millions of new jobs, upgrade much of the infrastructure, transition to a greener economy and surpass China in the world trade market.
In a speech in Pittsburgh on Wednesday night, Biden said it was time to rebuild the U.S. economy with enthusiasm. He believes the epidemic has clarified economic differences.
– Wall Street did not build the country
– It’s about opening up opportunities for everyone. It is time to build our economy from the bottom up, from the middle. It was not Wall Street that built this country. Biden says it was you, the middle class, who built the country.
He describes the investment as a one-time investment.
– These are investments that will create millions of jobs, strengthen the economy and help win the competition against China in the world market, says Biden.
The President strongly emphasizes that investment is coming now.
– He says that in fifty years people will look back and say, “This is the moment when America wins the future.”
Therefore, a drastic change in the law would be Biden’s solution
Technological rise in the stock market
According to the White House, the focus is initially on areas:
- Transportation Infrastructure – Investments in roads, bridges, railways and more.
- Home Infrastructure – Investments in broadband, water, buildings and housing
- Infrastructure in the Health and Care Sector – Investments in care services for the elderly and disabled
- Infrastructure in innovation, research and development
On Wall Street, there is a tech-savvy Nasdaq stock market Rose sharply throughout the day. The White House has announced that Biden is proposing to invest a total of $ 174 billion in the electric car market and that Tesla’s share has risen 3.67 percent. E24.
In total, it has been reported that the investments, the “American Work Plan” and the subsequent “American Family Plan” will cost between $ 3,000 and $ 4,000 billion. This collection was published in the 1930s by Franklin D. May be the size of Roosevelt’s “new contract.”
Increase the corporation tax
To finance the investment, increased taxes are necessary.
During his speech on Wednesday, Biden said anyone earning less than $ 400,000 would not receive increased income tax.
But the president says big companies have to make greater contributions and cites e-commerce company Amazon as an example.
As already announced in last year’s election campaign, Biden wants to raise the corporation tax to 21 to 28 percent. In that case, he is making one of the most important tax cuts for his predecessor, Donald Trump.
Democratic majority leader Nancy Pelosi says she has already begun work to turn Biden’s plan into a package that can be voted on by Congress. According to CNBC should be targeted It must be approved by July 4th.
– We hope to prepare and vote on a historic plan to create jobs, justice and opportunities for all, He says in a statement.
Fiden’s staff believe his plan may have the support of some Republicans in Congress, but so far the response has been lukewarm.
“There seems to be an insatiable hunger for President Biden to spend money and raise people’s taxes,” said Steve Scholes, a Republican sitting in the House of Representatives.
Says Senate Minority Leader Mitch McConnell Washington Post திட்டம் Project for Trojan horse.
– The White House’s latest liberal preference, which they have decided to call “infrastructure,” is a great missed opportunity for this administration, he said in a statement.
If Republican support is not possible, Democrats, like the Corona crisis package, are prepared to try to push the big deal through Congress only by democratic votes.
As such, Biden must have the full support of his own party, given the lack of a majority of Democrats in Congress.
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Both Trump and Barack Obama promised big investments in infrastructure – without any success.
Prevent tax evasion
Finance Minister Janet Yellen discussed the planned increase in the corporation tax last week.
He announced measures to prevent American companies from migrating to other countries with lower taxes. International talks have begun to investigate whether tax changes can be coordinated with other countries.
The United States hopes to ask for a voluntary, global minimum corporate tax rate.
– We have global racing when it comes to corporate tax. We hope to bring it to an end, Yellen said during a congressional hearing.