By
Mayowa Adebajo
April 12th, 2024
Biden’s recovery plan includes stricter tax policies for multinational companies.
The incumbent US president Joe Biden has revealed an infrastructure and economic recovery package worth over $2 trillion. The new package is part of the administration’s plan to recover the nation’s economy as the pandemic eases. Biden unveiled the infrastructure package details while speaking at a union hall in Pittsburgh on the 31st of March.
According to the US president, the $2 trillion would be spent over the next eight years. Biden said the corporate tax rate would rise to 28% to fund the infrastructure and economic recovery plan. Formerly, the corporate tax rate was $21%. Specifically, Biden said the vision is to create “the strongest, most resilient, innovative economy in the world.” He added that the vision would result in the creation of millions of “good-paying jobs.”
In addition, Biden’s plan includes stricter tax policies for multinational companies. The companies will begin to find it challenging to qualify for federal tax deductions. As stated by the White House, the increase in corporate tax and harsh tax policies on multinational companies will generate funds for the infrastructure plan within 15 years.
Joe Biden Reveals $2 Trillion Infrastructure and Economic Recovery Package
CNBC highlighted the Biden administration plan as they shift to boost the post-pandemic economy. The administration plans to pump $621 billion into transportation which will bolster the sector. The funds will go into transportation infrastructures like bridges, public transit, roads, airports, ports, and the development of electric vehicles.
Also, about $400 billion will be dedicated to the care of elderly Americans and the disabled. In addition, the US government plans to put over $300 billion into the improvement of drinking-water infrastructure. The fund will also cover expanding broadband access and the upgrade of electric grids. CNBC further stated that the Biden administration hopes to commit $580 billion in the county’s manufacturing, job training efforts, as well as research and development. The government will also put over $300 billion into construction and retrofitting affordable homes, including building and upgrading schools.
Speaking further at Carpenters Pittsburgh Training Center in Pittsburgh, Pennsylvania, Biden said he would reveal details of the second part of his recovery package in the coming weeks. Reiterating the importance of restructuring the US infrastructure, the president said:
“These are investments we have to make. We can afford to make them. To put it another way – we can’t afford not to.”
Per the infrastructure plan, the Republicans are against the tax hike. However, the GOP supports the proposal for roads, bridges and airports, reconstructions, and the expansion of broadband access.
Senate Minority Leader Mitch McConnell has opposed the tax hike in Biden’s $2 trillion infrastructure bill. McConnell said he is “not likely” to support the proposal. “It’s Like a Trojan horse. It’s called infrastructure, but inside the Trojan horse it’s going to be more borrowed money, and massive tax increases on all the productive parts of our economy,” explained he to reporters.