U.S. President Joe Biden has unveiled a $2.25-trillion U.S. infrastructure plan designed to modernize and boost the American economy.
The "American Jobs Plan" outlines an eight-year program that includes $620 billion U.S. for transportation and $650 billion U.S. for cleaner water and high-speed internet.
Biden’s plan also allocates $580 billion U.S. to American manufacturing -- which would include $180 billion U.S. for the biggest non-defense research and development (R&D) program on record and $400 billion U.S. toward care for the elderly and disabled.
"It’s time to build our economy from the middle out," Biden said, adding that his plan "rewards work, not just wealth."
President Biden said he is determined to push through a program he called vital to bolster America’s flagging competitiveness against other nations such as China.
However, the infrastructure plan is sure to face fierce opposition from Republican lawmakers in Congress, especially over Biden’s proposal to pay for the package with tax increases. The president wants to raise the corporate income tax rate to 28% and set a 21% minimum levy on global corporate earnings. While the spending would be temporary, the tax increases would be made permanent.
A key theme of the program is bolstering U.S. competitiveness against China. There’s $50 billion U.S. earmarked for domestic semiconductor manufacturing, and $40 billion more in upgrading research capacity in laboratories.
Climate change is also a major focus. The legislation directs $174 billion U.S. to electric vehicles, including sale rebates and tax incentives for consumers to buy American-made cars and money to expand public charging stations for electric vehicles.
