Biden Team Preparing Up to $3 Trillion in New Spending for the Economy – The New York Times

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“I don’t think there’s going to be any enthusiasm on our side for a tax increase,” Senator Mitch McConnell of Kentucky, the Republican leader, told reporters last week. He predicted the administration’s infrastructure plan would be a “Trojan horse” for tax increases.

Mr. Biden’s team has debated the merits of aggressively pursuing compromise with Republicans and business leaders on an infrastructure package, which would most likely require dropping or scaling back plans to raise taxes on corporations, or preparing to move another sweeping bill through a special parliamentary process that would require only Democratic votes. Mr. Biden’s advisers plan to present the proposal to congressional leaders this week.

“President Biden and his team are considering a range of potential options for how to invest in working families and reform our tax code so it rewards work, not wealth,” Jen Psaki, the White House press secretary, said. “Those conversations are ongoing, so any speculation about future economic proposals is premature and not a reflection of the White House’s thinking.”

Mr. Biden said in January that his relief bill would be followed by a “Build Back Better Recovery Plan,” echoing the language of his campaign agenda. He said that plan would “make historic investments in infrastructure and manufacturing, innovation, research and development, and clean energy. Investments in the caregiving economy and in skills and training needed by our workers to compete and win the global economy of the future.”

The timing of that proposal — which Mr. Biden initially had said would come in February — slipped as administration officials focused on completing the relief package. In the interim, administration officials have concluded their best chance to advance Mr. Biden’s larger agenda in Congress will be to split “Build Back Better” into component proposals.

The first plan, centered on infrastructure, includes large portions of the plan Mr. Biden offered in the 2020 election. His campaign predicted that Mr. Biden’s investments would create 5 million new jobs in manufacturing and advanced industries, on top of restoring all the jobs lost last year in the Covid-19 crisis.

Source Article from https://www.nytimes.com/2021/03/22/business/biden-infrastructure-spending.html

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