Tuesday, April 13, 2021

The Biden team prepares $ 3 trillion in new spending for the economy

Whether he can support muster republican Much will depend on the way the bill is paid.

Authorities have discussed compensating some or all infrastructure expenses by raising taxes on corporations, including increasing the 21 percent corporate income tax rate and forcing multinational corporations to pay more tax on income they earn abroad. A number of measures are included for. That strategy is unlikely to increase Republican votes.

Republican leader Senator Mitch McConnell of Kentucky said, “I don’t think there’s any enthusiasm from our side for the tax increase.” Told reporters last week. He speculated that the administration’s infrastructure plan for the tax hike would be a “Trojan horse”.

The overall price tag of the package can reach $ 4 trillion because it includes several tax incentives, such as credits to help care for children and encourage energy efficiency in existing buildings. According to estimates prepared by administration officials, it could increase temporary tax cuts to fight poverty, increasing the size of the proposal by hundreds of billions of dollars.

Mr. Biden supports all personal spending and tax proposals under consideration, but it is unclear whether he will split his agenda into pieces, or whether he and the democratic leader maximize opportunities to advance the effort through Congress Will do for

His advisers have debated the merits of aggressively compromising with Republicans and business leaders over an infrastructure package that would require skipping or scaling up plans to raise taxes on corporations. Another route would be to move the comprehensive bill through a special parliamentary process requiring only Democratic votes, as Mr. Biden did with the stimulus package.

White House press secretary Jane Saki said, “President Biden and his team are considering a range of possible options to invest in working families and improve our tax code.” “Those negotiations continue, so any speculation about future economic proposals is premature and not a reflection of the White House’s thinking.”

Mr Biden said in January that his relief bill would be followed by a “Build Back Better Recovery Plan”, which would include investment in infrastructure, manufacturing, clean energy, skills training and other areas.

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