LOC News
Infrastructure Investment Package – Next Up
Earlier this week, President Biden started a nationwide tour to promote a $2.25 trillion infrastructure investment package that would span 15 years. The American Jobs Plan (AJP) is a comprehensive investment package that will focus investments to fix and improve the nation’s transportation system, covering roads, bridges, transit, rail, and airport and port improvements. In addition, water infrastructure will be a key area of investment, along with improvements to the electric grid, high-speed broadband.
Infrastructure investment has been a common narrative for new administrations over that past 50-plus years, but few have generated momentum and identified enough support to advance significant investments. Because of its timing, the AJP has a real chance this time because of the COVID-19 pandemic and economic losses communities and businesses have faced. The hope from President Biden is to establish an investment focus that will help the economic recovery and create jobs for the future.
The following is a summary of the overall investments:
- $621 billion for transportation infrastructure and resilience.
- $111 billion to ensure clean, safe drinking water.
- $100 billion for affordable, reliable high-speed broadband.
- $100 billion to modernize power infrastructure.
- $213 billion to build, preserve, and retrofit homes and buildings.
- $100 billion to modernize public schools.
- $25 billion to upgrade and build childcare facilities.
- $28 billion to upgrade Veterans Affairs hospitals and federal buildings.
- $400 billion to expand access to quality, affordable home-based or community-based care for the elderly and disabled.
- $180 billion for technology research and development to advance infrastructure and climate science.
- $300 billion to bolster U.S. manufacturing, strengthen supply chains, protect against future pandemics, and jump-start clean energy manufacturing.
- $100 billion for workforce development programs.
As Congress considers this proposal, paying for the infrastructure package will be the key point of contention. The Made in America Tax Plan is effectively the funding vehicle for the AJP. The tax proposal would overhaul the corporate tax structure and trim some of the tax cut measures passed under President Trump. The tax cuts will create the funding mechanisms to pay for the AJP and include the following elements:
- Raise the corporate tax rate from 21% to 28%.
- Double the tax rate on foreign assets of U.S. companies to 21%.
- Create a 15% minimum tax on book income of large, profitable corporations.
- Make it harder for U.S. corporations to avoid taxes by merging with foreign companies.
- Eliminate deductions for offshoring jobs and create a tax credit for bringing them back to the U.S.
- Eliminate a tax break for “Foreign Derived Intangible Income” that companies have used to shift assets abroad.
- Eliminate subsidies, loopholes, and foreign tax credits for the fossil fuel industry.
- Restore payments from polluters into the Superfund Trust Fund.
- Increase IRS enforcement of the tax code against corporations.
Contact: Jim McCauley, Legislative Director - jmccauley@orcities.org
Last Updated 4/2/21