President Joe Biden will unveil a $2.25 trillion US infrastructure plan on Wednesday, according to Bloomberg. The spending will be paid for by tax hikes, with corporate tax set to rise to 28% from 21%, and a 21% minimum tax on global corporate earnings.
The eight-year plan dedicates $620 billion for transportation, including doubling in federal funding for public transit.
The spending also includes $650 billion for initiatives tied to improving quality of life at home while $580 billion will go into strengthening American manufacturing.
The White House says tax increases will be fully paying for the investment over the next 15 years.
Biden’s spending plan is part of a long-term economic program, with a second round of initiatives set to be announced in mid-April.
The plan seeks to address inequality and expanding help for underserved groups as well as bolstering the US competitiveness against China.
A further $174 billion is devoted to electric vehicles, including sale of rebates and tax incentives for consumers to buy American-made cars.
The infrastructure package doesn’t include any of the proposed tax increases on individuals that Biden talked about during his campaign.
Experts expect the administration to try to raise taxes on the wealthy and their assets in the second package coming later this spring.
The spending plan still faces challenges garnering Republican support in both houses where Democrats control by narrow margins.
The plan will also invite partisan and internal Democratic battles by lawmakers opposed to tax increases.
Biden is open to input from the Congress on what provisions to include in the final package and how to pay for them.
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