Who says money doesn’t grow on trees?
Apparently, President Joe Biden, or any of the Democrats, have never heard of this saying, as they prepare a new, enormous spending bill that tops $3 trillion.
After the Biden Administration was able to pass the whopping, $1.9 trillion Covid-19 relief bill, they thought ‘what’s the harm in spending more?’
According to a report from The New York Times, there is no harm whatsoever, as the administration drafts up a new legislative spending bill that will focus on rebuilding the infrastructure of the United States, as well as a tax increase to supplement the spending.
The Times report also states that as well as funding to rebuild American infrastructure, there will also be funding to reduce carbon emissions across the states.
What’s in the bill?
Documents that were obtained by the paper show that the infrastructure proposal would see $1 trillion spent on roads, bridges, ports, rail lines, charging stations to be used by electric vehicles, and vast improvements to the grid and other components of the power sector.
On top of this, according to The Washington Post, President Biden wants to invest $400 billion solely for the purpose of fighting climate change.
This section will see $60 billion invested for the improvements of green transit infrastructure, as well as $46 billion to be spent on research and development.
The green infrastructure investment will seek to make electric charging stations available up and down the country since they are very tough to find at the moment.
Also, the green investment will see $200 billion spent on 1 million housing units that will be classed as energy-efficient.
However, this sort of spending doesn’t just come about without consequences.
As a result of the unprecedented amount being spent, the administration has included an unspecified tax hike for the American population, in order to properly fund the plan.
On the Democrat side, praise has been heaped onto the spending plan, with many claiming that this will ‘define Biden’s legacy’ in office.
Former Democrat Governor of Pennsylvania, Ed Rendell, was one of these individuals.
He pointed out that the United States has not had a comprehensive infrastructure bill since the time of Dwight Eisenhower after he created the highway system.
Rendell stated that this bill has the potential to ‘do more for American manufacturing and blue-collar jobs than anything else.’
However, opposition to the bill has come in thick and fast, mainly on the Republican side, who are deeply opposed to any tax hikes contained within the legislation.
Senate Minority Leader Mitch McConnell stated that ‘there will not be any enthusiasm’ on the part of the GOP for the tax increases in the bill, whilst labeling the plan a ‘Trojan horse’ for higher taxes on the American populous.
Brian Riedl of the Manhattan Institute echoed the same sentiment as McConnell, labeling the Democrats as tax collectors.
However, the White House defended the potential for tax increases in the bill, claiming that the administration was searching for a way to ‘reward work, not wealth.’
Jen Psaki also claimed that ‘conversations were still ongoing’ regarding any potential, economic proposals, whilst stating that any speculation to said proposals at this time would be ‘premature.’
If the administration wants this bill to pass, they will have to seriously consider the implications of dramatic tax increases on the people of a nation who are just getting by, after months of restricted state economies and lockdowns.