The American Senate is on the verge of passing a $1 trillion U.S. bipartisan infrastructure bill.
The infrastructure legislation is part of a larger $3.5-trillion U.S. budget plan that sets the stage for a massive investment in social programs and climate policy in America. However, the Democrats will have to execute a complicated legislative dance to get both proposals through Congress in the coming months.
First, the Senate could pass the $1-trillion U.S. bipartisan infrastructure bill as early as this morning (August 10). The plan, which calls for $550 billion U.S. in new spending on transportation, utilities and broadband internet, is expected to get through the chamber with Democratic and Republican support.
The Senate will then move to pass the budget legislation. The measure would allow Democrats to pass up to $3.5 trillion U.S. in spending on climate policy, paid leave, child-care, education and health-care without a Republican vote.
Democrats and Republicans have each trumpeted the $1-trillion U.S. infrastructure bill as an overdue investment to modernize transportation and bolster the economy as the U.S. emerges from the COVID-19 pandemic.
The infrastructure legislation puts new funds into roads, bridges, airports, waterways, railways, public transit, water systems, the power grid and broadband internet, among other areas.
Democrats aim to pay for their spending plan through corporate and individual tax reform, along with increased IRS enforcement of existing rates.
Democrats have previously raised the prospect of hiking the corporate tax rate to 28% and increasing the top individual tax bracket to 39.6%. A 2017 Republican tax law slashed the corporate tax rate to 21% from 35%, and cut the top individual tax rate to 37% from 39.6%.
