- Biden has unveiled the first part of his up to $4 trillion plan to overhaul the American economy.
- The package announced today, called the American Jobs Plan, will cost around $2 trillion.
- The bill features substantial investments in transportation, broadband, and care workers.
- See more stories on Insider’s business page.
President Joe Biden introduced a $2 trillion package that will form the first part of a likely $4 trillion infrastructure plan on Wednesday, a colossal measure aimed at overhauling the US economy, strengthening its competitiveness abroad, and leveling the playing field for the American middle class.
“Now it’s time to rebuild,” Biden said during his announcement, adding: “Wall Street didn’t build this country. You, the great middle class, built this country, and unions built the middle class.”
The plan is split into two parts; the first part is called the American Jobs Plan. It will feature federal spending to upgrade aging roads, bridges, and ports, along with climate-related measures to drastically cut carbon emissions. It invests in clean-energy projects, rural broadband, and affordable housing. It will also funnel funding towards caretakers for the elderly and disabled.
Biden called it a “once-in-a-generation investment in America” unlike anything since the 1950s-era building of the Interstate or the 1960s-era Space Race.
“It’s big, yes. It’s bold, yes. And we can get it done,” he added.
Spending for the package will take place over eight years, and breaks down into investments in transportation, water, broadband and power, housing and education, research and development, and manufacturing and labor.
The package will also contain an accompanying tax hike for corporations. The Made In America Tax Plan will raise the corporate tax to 28%, strengthen the global minimum tax to 21%, and provide tax credits for companies that will onshore jobs, instead of those who move them offshore. It would also provide more resources to the Internal Revenue Service.
Overall, the tax increase is meant to completely offset the cost of the package over 15 years.
A wide swath of Senate Democrats appear ready to sign on for another round of substantial government spending, although some progressives have already said it’s not large enough.
However, Republicans have made clear they will likely oppose any tax hikes to finance major chunks of the project.
The second part, the American Families Plan, to be announced in mid-April, will be geared towards social infrastructure, especially areas like childcare and education. That will likely include measures like universal pre-K, free community college, an extension of periodic cash payments for parents, and a national paid leave program.
Around 2 million women dropped out of the workforce over the past year because of the pandemic. Biden’s push is also aimed at reducing barriers to make it easier for women and people of color to find work as the economy recovers.