President Joe Biden will unveil a $2 trillion dollar infrastructure plan during a Wednesday afternoon speech in Pittsburgh. He is expected to make the case that the investments are necessary to help the U.S. compete with China and tackle climate change.
So whats in it? The proposal includes spending for:
- $621 billion to modernize transportation infrastructure
- $400 billion to help care for the aging and those with disabilities
- $300 billion to boost the manufacturing industry
- $213 billion on retrofitting and building affordable housing
- $100 billion to expand broadband access, among other investments.
How is going to pay for the spending? The corporate tax rate would rise to 28% from 21% and the plan would set the minimum tax on U.S. companies’ foreign income at 21%, up from 10.5% today
What isn’t in it: President Joe Biden will not call for a wealth tax to help pay for this plan. In doing so, he will sidestep a proposal that progressive Democrats, led by Sen. Elizabeth Warren, supported and openly advocated for to raise tax revenue and reduce income inequality. (POLITICO)
Stock futures wobbled this morning as investors awaited the rollout of President Biden’s multitrillion-dollar spending program and details on how taxpayers will fund it. I can’t imagine Wall Street is going to be too thrilled with an increase in the corporate tax even if it is for infrastructure. (WSJ)