The rumored massive tax hikes are coming, as President Joe Biden made it official Wednesday.
The plan includes $2 trillion to improve infrastructure, and the funding is going to come from upping the corporate tax rate to 28%.
Biden was in Pittsburgh to make the announcement, and called the plan a vision to create “the strongest, most resilient, innovate economy in the world.”
According to White House officials, the tax increase would fund the infrastructure plan within 15 years.
So, what does $2 trillion buy in infrastructure improvements? $621 billion will go into transportation. That includes roads, bridges, ports, airports, EV development and public transportation.
$400 billion will go to care for elderly and disabled people in the U.S.
An additional $300 billion is earmarked tour building and retrofitting affordable housing. Part of that will also go towards building and updating schools.
$580 billion will be invested in American manufacturing and job training.
Biden has been in office for just over two months, and it’s his second multi-trillion announcement. His first was the almost $2 trillion COVID relief plan.
The President explained his plan this way. “These are investments we have to make. We can afford to make them. To put it another way — we can’t afford not to.”
The plan will most likely be opposed by Republicans, as Senate Minority Leader Mitch McConnell said he probably won’t support the proposal because of the massive tax increases.
As for when it could get passed by Congress, the Democrats are hoping it’s in place mid to late summer.