White House Exploring How to Fund Infrastructure Package
It has been less than one month since President Joe Biden passed his $1.9 trillion COVID-19 relief package. However, he is already eyeing a new piece of major legislation aimed at improving the nation’s infrastructure. On Tuesday, the Washington Post reported that Biden and his team are looking at needing to raise $3 trillion through additional taxes to pay for the proposed infrastructure package.
Tax Hikes to Come?
While nobody would argue that the country is in need of some significant infrastructure upgrades, the question of how to pay for it becomes more divisive. According to the report in the Post, the Biden administration will raise taxes on wealthy families and corporations to fund the legislation.
These tax hikes would negate the cuts put in place by former President Donald Trump. Biden has previously said that he would only raise taxes on Americans making over $400,000 annually.
Fox News is reporting that the impending tax increases would come in two separate waves. The first part of the bill would be paid for by tax hikes on corporations by raising their tax rate to 28% and increasing the global minimum tax paid to 21% from where it currently sits at 13%. The plan would also end the federal subsidies program for fossil fuel corporations. The second wave would hit high-income earners.
Details of Bill
While the minute details of the bill have not been released, the Biden administration is selling it as both infrastructure legislation and an extension of the popular COVID-19 relief plan. However, the massive bill would also encompass policies geared toward climate change, education, health care, and more beyond simple infrastructure upgrades.