President Joe Biden released a comprehensive plan to pump money into transportation, renewable energy, manufacturing and climate change efforts – funded by the cancellation of some tax breaks that companies received during the Trump administration.
The $ 2.25 trillion eight-year proposal is a continuation of the $ 1.9 trillion economic relief bill passed earlier this month. To cover the costs, Biden plans to increase the corporate tax from 21% to 28%. The plan also provides for a minimum tax on profits US companies make overseas and increases the tax rate from around 13% to 21%.
The White House is planning a second major package, which could cost $ 1 trillion or more later in April, to focus on social interventions, including expanding health care and access to paid vacations, and extending child tax credits – offset by tax increases for wealthy individuals.
Biden offered his opening argument for the first phase of spending in Pittsburgh last Wednesday. Here are some of the key elements of the plan:
–Transport
The plan provides $ 620 billion for transportation. That includes $ 115 billion to improve bridges, highways, roads and $ 20 billion to improve road safety, which will add value to 20,000 miles of roads and highways. There's $ 85 billion in public transportation modernization and $ 80 billion in Amtrak. The plan provides $ 25 billion for airports and $ 17 billion for ports, inland waterways and ferries. Biden also calls for $ 20 billion for transportation projects for disadvantaged communities.
–Electric vehicles
The transportation funding would specifically provide $ 174 billion for electric vehicles, including sales discounts and tax incentives for consumers to buy American-made cars. By 2030, 500,000 charging stations are to be approved for state and local governments as well as the private sector. This includes funds for the electrification of school buses and federal vehicles such as post trucks.
–Research and Development
Biden calls for $ 180 billion to upgrade the country's research infrastructure and laboratories at universities and federal agencies. The funds would also be used for climate science research and the eradication of gender and racial inequalities in science, math and technology.
– Manufacturing spurt
A $ 300 billion initiative to boost American manufacturing includes a series of bipartisan initiatives that Senate majority leader Chuck Schumer planned in a broader China bill this spring. Biden will ask Congress to invest $ 50 billion in semiconductor manufacturing and research – as provided for in the CHIPS Act. The National Science Foundation also has $ 50 billion to create a technology directorate modeled on the Endless Frontiers Act.
He is also asking for $ 50 billion to set up a new office in the Department of Commerce to monitor domestic industrial capacity and fund investments to support the production of critical goods.
– HR development
Biden proposes $ 100 billion for people development programs, including training for those who have lost their jobs, as well as training initiatives.
–Power grid
Biden is offering $ 100 billion to build a more resilient power grid. He also proposes an extension and extension of an extended, refundable investment tax credit and a production tax credit for the generation and storage of renewable energies by 10 years.
The plan provides for high labor standards and enables workers in the projects to join unions and negotiate together. The goal is to have 100% carbon-free electricity by 2035. The plan also provides $ 16 billion to rehabilitate abandoned mines and gas wells.
–Carbon capture
The plan calls for 10 carbon capture facilities to be retrofitted in large steel, cement and chemical production facilities. It expands the Section 45Q bipartisan tax credit for carbon capture, making it refundable and easier to claim. Another $ 10 billion would be spent on a civilian climate corps that employs Americans on conservation work on public properties and bodies of water.
–Clean water
The plan provides $ 45 billion for lead pipe removal across the country. It also calls for US $ 56 billion in grants and low-cost loans to states, tribes, territories and disadvantaged communities to improve water systems and US $ 10 billion to strengthen well and sewer systems in rural areas.
– Broadband Internet
Biden is proposing $ 100 billion to bring high-speed broadband internet to all Americans. The plan also includes measures to improve pricing transparency and competitiveness, as well as short-term subsidies for low-income households.
–Casing
The proposal would allocate $ 213 billion to build and renovate more than two million affordable homes. The plan provides tax credits for building housing for low-income families and $ 40 billion for public housing.
– Schools, child care
The plan provides $ 100 billion to improve public school buildings, including $ 50 billion for direct grants and another $ 50 billion for bonds. The plan also provides $ 12 billion in community college facilities and technology and $ 25 billion in modernizing childcare facilities and incentivizing employers to provide on-site childcare.
– Elderly care, VA hospitals
Biden asked Congress to approve $ 400 billion for housing and care for the elderly and people with disabilities. He is also proposing $ 18 billion to upgrade Veterans Affairs hospitals and clinics.
– corporate tax increases
The plan would increase the corporate tax levy from 21% to 28% and increase the rate set in President Donald Trump's tax law. The plan would also introduce a minimum tax of 15% on a company's profits for financial reporting purposes. This would prevent companies from taking advantage of tax breaks in order to reduce their tax burden to zero.
– International taxes
The plan would also impose a minimum tax on profits US companies make overseas and increase the tax rate from around 13% to 21%. It also includes several measures to penalize companies that relocate assets and jobs overseas, and it removes the current preference for posting profits overseas.
– Eliminate oil and gas tax breaks
The plan would eliminate all tax preferences for the oil and gas industry and also require pollution-causing companies to pay into the Superfund trust fund to help cover fuel cleanup costs.
–IRS audits
The plan provides additional funding for the Internal Revenue Service to improve corporate audits. The White House announces that it will publish more details on tax audits for individuals in the coming weeks.