Biden’s more than $ 2 trillion infrastructure package includes funding for what is traditionally seen as infrastructure – including money for things like roads and bridges – but also for more structural changes. wide of the American economy. Biden’s plan would raise the corporate tax rate to help foot the bill. Companies have widely opposed the plan, which comes after Biden signed a $ 1.9 trillion coronavirus relief bill in March.
The president’s plan would raise the corporate tax rate to 28%, from 21%, but he said on Wednesday he was ready to negotiate on the rate. Before the corporate tax rate cuts under Trump in 2017, the United States had the highest corporate tax rate among developed countries.
“Compromise is inevitable,” Biden said, calling on Congress to come together on the plan. “But here is what we will not be open to. We will not be prepared to do nothing. Inaction is simply not an option. “
Infrastructure The plan, among other things, would electrify federal vehicles and boost transportation infrastructure, home care services, housing and broadband, as well as pipelines and the power grid. Biden’s aides and agents see the infrastructure plan as a way to cement and expand the Democratic coalition.
White House press secretary Jen Psaki called the package “essentially a jobs bill” in Wednesday’s daily press briefing.
“Yes, there is a lot of infrastructure here, but… our workers, our workforce are part of the backbone and infrastructure of the American economy and communities,” Psaki said.
In his speech on Wednesday, Biden defended a changing definition of infrastructure.
“Two hundred years ago, trains weren’t traditional infrastructure either,” Biden said. “The idea of infrastructure has always evolved to meet the aspirations [of] the American people and their needs. And it is changing again today.
Transportation Secretary Pete Buttigieg also touched on the definition of infrastructure during an interview with MSNBC on Wednesday.
“There is this semantic debate that opens. For me it’s a bit irrelevant, ”he said. “I can’t imagine why someone would say, ‘I’m for broadband, we should definitely have rural broadband, but I’m going to vote against it because I don’t think it meets the traditional definition of l ‘infrastructure. “”
“If it’s good policy, vote for it and call it whatever you want,” Buttigieg said.
Republicans objected to the Biden administration’s wording of the package and argued it was too bloated. Across the aisle, Progressives argued the plan does not go far enough, while Senator Joe Manchin (DW.Va.), a moderate, pushed back, saying the increase in l The 28 percent corporation tax is a no-start.
The package is unlikely to garner much, if any, Republican support, which would require passing the plan through budget reconciliation and the Senate Democrats to all agree. Senate Minority Leader Mitch McConnell said no one his GOP conference would vote for the spending bill.
Sam Mintz contributed to this report.