The Biden administration has already won some victories in the battle to provide aid to the American people. For example, the $1.9 trillion coronavirus relief package that was passed in March has extended unemployment insurance, expanded the child tax credit, provided a new round of stimulus checks, and more. Now the Biden administration is pushing a $2.3 trillion infrastructure bill that will further help struggling Americans, as well as improve the country’s infrastructure.
Part of Biden’s plan is focused on infrastructure spending, with a proposed $115 billion going toward repairing roads, bridges, waterways and railways across America. The bill would also set aside $100 billion for our country’s education infrastructure, including upgrading older schools, as well as building new ones. This spending would also go towards universal pre-K, free community college, and reduced tuition at historically African American colleges and universities.
Lower the Price of Medications
One of the largest issues for millions of Americans is the cost of medications. In fact, prescription drugs can be so expensive that many Americans are seeking medications from other countries. President Biden wants to change all of that: the White House plans to force pharmaceutical companies to lower their prices or pay a penalty.
Focus On Climate Change
Biden’s plan does not stop there. The president is also proposing spending billions on rebates and tax incentives to encourage Americans to purchase electric vehicles, and for transitioning school buses and transit vehicles from diesel to electric. The bill would also include $400 billion to combat climate change, including $60 billion related to green transit and $46 billion for climate-related research and development. Biden also hopes to install electric-vehicle charging stations across America.
Expand the Child Tax Credit
As part of the recently signed Covid relief bill, an increased child tax credit is in effect for just one year, but Biden hopes to expand the child tax credit for several years with his new proposal.
Help Low-Income Americans
The proposed bill will include $200 billion for housing infrastructure, including $100 billion to expand housing for low-income Americans.
Increase Corporate Tax
President Biden is seeking to raise the corporate tax rate from 21% to 28%. He also plans on increasing taxes on wealthy investors. Republicans are opposed to the tax increase: “The GOP won’t vote for these tax hikes. Why should they be the tax collectors for Biden’s spending spree?” said Brian Riedl, a former aide to Sen. Rob Portman (R-Ohio).
The infrastructure bill is still in the planning stages, and is not yet ready for debate in the House and Senate. President Biden met with bipartisan members of the House and Senate on Monday, April 12 to discuss the infrastructure plan. Republicans criticized the reliance of the bill on corporate tax increases, and Biden acknowledged it and said he would continue to work with Republicans to get their support. He even offered them the ability to offer their own proposals, stating, “I’m open to other ideas,” he said, “so long as they do not impose any tax increase on people making less than $400,000.” A senior Republican senator said he and his colleagues could support an infrastructure bill of around $800 billion that focuses on improvements to roads, bridges and broadband access that would be funded through user fees and tax incentives. Negotiations are set to continue in the meantime.