Joe Biden is set to consider a plan from his top advisers to invest around $ 3 billion in government spending in the U.S. economy with investments in infrastructure, clean energy and education, two said on Monday. people familiar with the matter.
Additional budget support for US recovery would follow Biden’s 2020 presidential election closely election promises tackle some of the structural deficiencies plaguing the country’s economy. It should be partially offset by tax increases on wealthy households and businesses.
This would represent the second step in Biden’s ambitious economic program, after Congress approved a $ 1.9 billion stimulus package to provide immediate assistance to households during the pandemic.
Biden’s advisers have turned to infrastructure and education investment plans in the wake of the stimulus bill, and are expected to present more detailed proposals to the president this week. People familiar with the matter said Biden had yet to approve details and nothing had been finalized.
“Help is on the way thanks to the American Rescue Plan and @POTUS [the president] focuses on rebuilding our economy and the ideas he spoke about during the election campaign, from investing in infrastructure, to providing care, to ensuring that the tax code rewards work, not wealth ” , wrote Jen Psaki, White House press secretary Twitter Monday.
“[His] the focus will be on jobs and improving the lives of Americans. He is considering a range of plan options, scopes and sizes and will speak with his political team in the coming days, but speculation is premature, given @POTUS does not plan to provide further details this week. “
Biden had already said that he wanted to present its multibillion-dollar investment program as early as February, but that goal was quickly ruled out as White House officials and lawmakers focused on passing the $ 1.9 billion coronavirus stimulus package. dollars.
Getting congressional approval for another big round of spending with slim majorities for Democrats in both the House of Representatives and the Senate can prove even more difficult than for the stimulus plan.
Although Republicans on Capitol Hill have expressed interest in approving more infrastructure spending, they have opposed tax increases and other national spending initiatives.
During the presidential campaign, Biden proposed to increase the corporate tax rate from 21% to 28%, as well as to increase the individual taxes of Americans earning more than $ 400,000 a year.
Mitch McConnell, Senate Republican Minority Leader, tore up fledgling White House investment plans on Monday, calling them “a Trojan horse for massive tax hikes and other job-destroying leftist policies.” .
McConnell then referred to the economic policies of former President Donald Trump, saying they had worked better in the pre-pandemic era.
“Wages were rising faster at the bottom than at the top. Unemployment was at historically low levels. American workers were a very valuable commodity and were being compensated for it, ”he said. “Pro-worker prosperity does not mean that big government politicians or big business bosses run all aspects of the economy in liberal fashions.”
The New York Times first reported that Biden’s economic advisers were set to present the president with a $ 3 billion investment plan this week, which could be split into two packages.
The first would focus on traditional infrastructure and clean energy investments, while the second would focus on investments in child care and education, including funding for universal preschool courses and community colleges. free.