On Wednesday, the Biden Administration unveiled the major components of the president’s next major initiative: Infrastructure. The plan outlines more than $2 trillion in spending and a series of tax hikes to help offset the cost.
The proposal includes $300 billion for affordable housing, $300 billion to improve drinking water, electrical grids, and broadband access, and $400 billion to help take care of the elderly and the disabled. It also includes $621 billion for transportation infrastructure and $580 billion worth of investments in R&D, job training, and manufacturing.
In order to fund the bill, the administration is proposing an increase in the corporate tax rate from 21% to 28%, doubling the minimum GILTI tax, imposing a 15 percent minimum tax on corporate book income, and a series of other changes.
Now, the fight to pass the bill is expected to take place on Capitol Hill with Republicans attacking the tax hikes (and likely some of the spending).
Additional opposition will come from corporate America, with major corporations like FedEx, Capital One, Altria, Lockheed Martin, and Toyota already lining up against the tax increase.