PITTSBURGH: President Joe Biden on Wednesday called for a sweeping use of government power to reshape the world’s largest economy and counter China’s rise in a US$2 trillion-plus (RM8.3 trillion) proposal that was met with swift Republican resistance.
The president’s “American Jobs Plan” would put corporate America on the hook for the tab as the government creates millions of jobs building infrastructure, such as roads, tackles climate change and boosts human services like care for the elderly.
“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,“ Biden said in unveiling the program in Pittsburgh.
He said he had no problem asking firms to foot the bill and is “gonna put an end” to Amazon.com Inc and other major firms paying little to nothing in federal taxes.
Biden’s second multitrillion-dollar legislative proposal in two months in office sets the stage for a partisan clash in the US Congress, where members largely agree that investments are needed but are divided on the total size and inclusion of programs traditionally seen as social services.
Another economic proposal Biden will release in April could add a further US$2 trillion to the total price tag.
Coupled with his recently enacted US$1.9 trillion coronavirus relief package, Biden’s infrastructure initiative would give the federal government a bigger role in the US economy than it has had in generations, accounting for 20% or more of annual output.
Biden is ignoring a campaign promise to raise taxes on wealthy individuals, at least for now.
The plan would instead increase the corporate tax rate to 28% from 21% and change the tax code to close loopholes that allow companies to move profits overseas, according to a 25-page briefing paper released by the White House.
Neil Bradley, chief policy officer at the nation’s largest trade group, the US Chamber of Commerce, said while the organisation shares Biden’s sense of urgency on infrastructure, his plan is “dangerously misguided.”
The plan includes US$621 billion to rebuild infrastructure, such as bridges, highways and ports, and a historic US$174 billion investment in the electric vehicle market that sets a goal of building a nationwide charging network by 2030.
Administration officials also said they hoped to address economic inequality created by racial discrimination, for instance cutting air pollution that affects Black and Hispanic communities near ports or power plants.
Congress will be asked to invest US$400 billion in expanding access to affordable community-based care for aging Americans and people with disabilities. It is aimed at low-wage workers in that industry, who are disproportionately women of color.
Biden is moving forward with the economic plan while attempting to deliver on promises to provide enough Covid-19 vaccines for all American adults by the end of May. The White House is also dealing with a rise in the number of migrants at the southern border and fallout from back-to-back mass shootings.
The plan forms one part of the “Build Back Better” agenda that the administration aims to introduce. A second legislative package being marketed as helping families is due within weeks.
That package is expected to include the expansion of health insurance coverage and child tax benefits, as well as paid family and medical leave. – Reuters
Source: The Sun Daily
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