Biden launches a fiery defense of his tax hikes: ‘This is about making the average multimillionaire pay just a fair share’

Biden
President Joe Biden.

  • In a Wednesday address, President Joe Biden gave an impassioned defense of his proposed tax hikes.
  • Biden wants to hike taxes on corporations and Americans making over $400,000 a year.
  • He said the rates he’s proposing have historical precedent, and he wants to offset spending.
  • See more stories on Insider’s business page.

While answering questions after a Wednesday address on the impact of the American Rescue Plan, President Joe Biden doubled down on his tax proposals and the need for wealthier Americans and corporations to pay their fair share – and took aim at prior Republican tax cuts.

“My Republican friends had no problem voting to pass a tax proposal – it expires in 2025 – that costs $2 trillion,” Biden said, adding that none of that was paid for. In fact, he said, it “gave the overwhelming percentage of those tax breaks to people who didn’t need it. The top one tenth of 1% didn’t need it.”

As for the argument Republicans gave in 2017, that it would generate a “great economic surge and growth,” Biden said “everyone from the Heritage Foundation on has pointed out it hadn’t done that.”

Then he turned to his plans to hike taxes.

“The biggest 35 or 30 corporations didn’t pay a single solitary penny last year, and they’re Fortune 500 companies,” Biden said. “They made $400 billion. They paid no taxes. How can that make any sense?”

Biden said sometime in the 2000s – he’d have his staff supply the exact date – the average CEO of a Fortune 500 company made about 36 times what the average employee of that corporation made.

“It’s over 450 times as much now. As my mother would say, who died and left them boss?” he said before raising his voice while questioning how it can benefit the economy to have CEOs make so much more than workers. “No, seriously, what rationale, tell me what benefit flows from that?”

“We’re not going to deprive” any executive “of their second or third home” or traveling privately by jet, he said.

“It’s not going to affect your standard of living at all. Not a little tiny bit,” Biden said, raising his voice, “while I can affect the standard of living of people I grew up with.”

Biden has proposed a slew of tax measures to offset the proposed spending in his two-pronged infrastructure package. Those include raising the income tax rate for the wealthiest Americans to 39.6%, bringing up the capital gains rate to the same level, and increasing the corporate tax rate from 21% to 28%. The corporate tax rate was one measure that was slashed under Trump’s tax package, falling from 35% to 21%.

Biden said he was open to compromising on the corporate tax rate – some Democrats have floated an increase to 25%, instead of 28% – but said he still wants to offset spending.

“I’m willing to compromise, but I’m not willing to not pay for what we’re talking about,” he said.

Inequality expert Sarah Anderson has testified in front of the Senate Budget Committee that the yearly gap between CEO pay and the pay of average workers is about 350 to 1.

Overall, the tax burden of Biden’s proposal would fall squarely on the top 1% of American tax filers, who would pay an average additional $100,000 per year. Biden addressed his proposal to raise the income tax rate to 39.6% for Americans making over $400,000, which he noted was a return to the Bush-era level.

“Just raise it back to what it was before. It raises enough money from that savings to put every single person in community college who wants to go,” he said. On that topic, he posed a question: “What’s going to grow America more?” The options, he said, are “the super wealthy having to pay 3.9% less tax” or an entire generation “of Americans having associate degrees.”

In closing, Biden said: “This is about making the average multimillionaire pay just a fair share. It’s not going to affect their standard of living” – pausing to whisper – “a little bit.”

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Mitch McConnell draws a red line at $600 billion for infrastructure and jobs – and says Trump tax cuts are off-limits

McConnell
Senate Minority Leader Mitch McConnell (R-KY).

  • McConnell said the GOP won’t cut a deal with Biden above $600 billion on a jobs package.
  • He said there would be “zero” Republican support for Biden’s $4 trillion pair of spending packages.
  • Biden has proposed two packages with trillions of spending on physical and social infrastructure.
  • See more stories on Insider’s business page.

Senate Minority Leader Mitch McConnell drew a $600 billion red line for an infrastructure and jobs plan on Monday, an amount less than a fifth of the $4 trillion in economic spending plans that President Joe Biden has unveiled.

“We’re open to doing a roughly $600 billion package, which deals with what all of us agree is infrastructure and to talk about how to pay for that in any way other than reopening the 2017 tax reform bill,” he said at a press conference at Louisville, Kentucky.

The Senate’s top Republican flatly rejected going above the $600 billion price tag, saying “if it’s going to be about infrastructure, let’s make it about infrastructure.”

“I don’t think there will be any Republican support – none, zero – for the $4.1 trillion grab-bag, which has infrastructure in it but a whole lot of other stuff,” McConnell said. He also ruled out adjusting President Donald Trump’s tax law, a measure Biden wants to roll back to pay for his plans.

“We’re not going to revisit the 2017 tax bill,” he said. “We’re happy to look for traditional infrastructure pay-fors, which means the users participate.”

McConnell’s comments underscore the wide bridge between Republicans and Democrats on their economic priorities. Their ability to cut a deal will depend whether they can agree on methods to finance a package as well as its overall scope. Democrats are calling for aggressive spending while Republicans insist on narrowing a package’s focus.

Biden has rolled out $4 trillion in a pair of economic plans to shore up physical infrastructure such as roads and bridges, as well as manufacturing and broadband. His latest $1.8 trillion plan unveiled Wednesday would establish paid family and medical leave, universal Pre-K, tuition-free community college, and monthly cash payments for parents.

Biden has proposed lifting the corporate tax rate to 28% from 21% to cover part of the spending, a step that has strong backing among many Democrats.

A group of Senate Republicans led by Sen. Shelley Moore Capito of West Virginia unveiled a $568 billion infrastructure plan late last month. Much of that spending would directed towards areas Republicans strongly favor, such as roads and bridges, ports, waterways, and expanded broadband.

Capito and Biden spoke on Thursday in what she described as a “constructive and substantive call” on Twitter.

“We’re working with the White House, and I think it’s been very open-door, we’ve been very encouraged to keep moving forward, and that’s what we’re going to do,” she told Fox News on Sunday. Capito floated user-fees and repurposing unspent stimulus aid provided to state and local governments as a means of paying for the plan.

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Biden won’t get all his tax increases through Congress. Here’s what Morgan Stanley thinks is possible.

joe jill biden
President Joe Biden and First Lady Jill Biden.

  • President Joe Biden wants to pay for his infrastructure proposals with tax increases.
  • Morgan Stanley strategists predict taxes will go up, but not as much as Biden’s proposing.
  • Still, it said Americans earning over $400,000 should expect to see their income tax rate increase.
  • See more stories on Insider’s business page.

President Joe Biden wants to increase taxes on some of the country’s highest earners to pay for affordable childcare, paid family leave, and free community college.

But how much will taxes actually go up? Morgan Stanley thinks Biden will only get some of what he’s asking for.

The investment bank cited comments from moderate Democratic Sen. Joe Manchin of West Virginia in predicting that a 25% corporate tax rate – not 28%, as Biden proposed – is possible. And while the income rate increasing to 39.6% for those earning over $400,000 remains possible, it said, an increase to the capital gains rate would be 30% or below, not the 39.6% currently proposed.

Manchin has signaled he wants a corporate tax rate closer to 25%, while Axios reports that some Senate Democrats are also currently resistant to potential tax hikes.

The bank also said that extending a 3.8% Obamacare tax to high earners is likely possible, but eliminating the step-up basis, which allows valuable assets to be passed along without taxes on any of its gains, may not be.

Screen Shot 2021 04 29 at 9.28.45 AM
Chart via Morgan Stanley.

Increased funding for ramped-up IRS enforcement – which would target the wealthiest Americans, and ensure they’re paying taxes owed – is possible, according to Morgan Stanley. That measure alone could bring in an additional $700 billion over the next decade, according to the Department of Treasury. But, as Insider’s Ayelet Sheffey reported, that boost in funding would likely mean the wealthiest would still be hiding hundreds of billions every year.

Since neither eventual bill is likely to garner GOP support, the bank said a package is likely headed for party-line reconciliation – and require some negotiation.

Still, Morgan Stanley’s base case sees Congress passing about $4 trillion in spending, whether it’s in one package or two, essentially the total that the White House wants.

“Look, I’m not out to punish anyone. But I will not add to the tax burden of the middle class of this country,” Biden said on Wednesday evening in his first joint address to Congress. “They’re already paying enough. What I’ve proposed is fair. It’s fiscally responsible.”

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These 4 sectors are set to benefit from President Biden’s American Families Plan, UBS says

Joe Biden Stimulus
  • President Biden is set to unveil the second part of his infrastructure-spending package, dubbed the American Families Plan.
  • UBS Wealth Management says greentech, semiconductors, financials, and industrials will benefit from the new bill.
  • The UBS team also believes Biden’s planned tax increases will only mildly affect earnings per share.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

In a new client note, UBS Global Wealth Management laid out four sectors set to benefit from President Biden’s second infrastructure spending bill, dubbed the American Families Plan.

Mark Haefele, the firm’s chief investment officer, said that unlike many market commentators, he doesn’t believe Biden’s infrastructure spending has been fully priced in.

According to Haefele, President Biden’s American Families Plan – together with the American Jobs Plan – could amount to a $4 trillion investment in US infrastructure, and much of it has yet to be accounted for.

Haefele’s UBS team said they believe four sectors will see gains from the historic infrastructure spend: greentech, semiconductors, industrials, and financials.

(1) Green tech

With “a meaningful portion” of President Biden’s infrastructure spending plan dedicated to decarbonization initiatives, UBS expects Greentech companies to be the biggest beneficiary of the incoming record spend.

Companies that operate in electric vehicles, renewable power, clean energy, energy efficiency, and water and electric grid upgrades should perform well, according to UBS.

The suppliers for Greentech firms are also set to outperform during 2021. UBS said it has been “tactically adding exposure” in Greentech firms and their suppliers over the last few months amid a pullback for high-flying tech names.

(2) Semiconductors

President Biden has allocated $50 billion to subsidize domestic semiconductor manufacturing and research in a move to combat China’s growing dominance in the field.

UBS expects this will help US-based manufacturers expand their footprint in 2021 and beyond, making the sector a top pick for investors.

Intel already announced plans to add $20 billion worth of foundry capacity in March.

(3) Industrials

The obvious pick to benefit from infrastructure spending is industrials, and UBS agrees. The wealth management office said steel and aggregate (cement) companies stand to benefit from Biden’s spending.

However, the UBS team also said it cut exposure to steel companies recently due to outperformance in the sector caused by supply imbalances.

The wealth management group said as supply constraints improve over the next year they expect steel companies to “come under pressure.” US Steel is already up nearly 250% over the past year alone.

(4) Financials

Finally, UBS believes the financial sector will benefit from infrastructure spending due to higher interest rates.

The wealth management office said a move toward higher interest rates as the economy reopens will “more than offset” modest drags from tightening regulations.

The team also said they see President Biden’s combined infrastructure plans boosting GDP by 0.5 percentage points and that earnings per share will grow 12% next year thanks to above-trend GDP growth.

Higher taxes, which are expected to pay for at least part of the infrastructure spending, will also only trim S&P 500 profits by about 4% in 2022, based on UBS’ research.

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Biden reportedly briefed major bank CEOs before unveiling infrastructure plan, corporate tax hike

Biden
President Joe Biden has framed his infrastructure plan as a means of strengthening democracy and undermining autocracy.

  • President Joe Biden’s infrastructure package includes an increase in the corporate tax rate.
  • He briefed several bank CEOs on the package the morning before the announcement, the WP reports.
  • Business had a mixed response to it, while it has broken clearly with the GOP on several issues.
  • See more stories on Insider’s business page.

President Joe Biden wants to increase taxes on corporations with his American Jobs Plan – and he let some leading business executives know before he announced it.

According to The Washington Post, the Biden administration briefed Brian Moynihan, the CEO of Bank of America, and David M. Solomon, the CEO of Goldman Sachs – along with “four other chief executives of the country’s biggest banks” – the morning of the infrastructure plan’s announcement.

They weren’t the only ones briefed, according to the Post; “in a 24-hour period,” groups like the Business Roundtable, the Chamber of Commerce, and National Association of Manufacturers also heard from White House officials, with outreach to thousands of small businesses also being planned.

All three of those groups have raised public objections: The Chamber of Commerce has come out against the corporate tax hikes, as have the Business Roundtable and the National Association of Manufacturers.

According to the Post, Commerce Secretary Gina Raimondo “has spoken to more than 50 leading executives in recent days about the plan.”

On the whole, the business reaction to that hike has certainly not been uniform, with CEOs surveyed by the Business Roundtable saying that the increase could impact hiring and wage raises, but Amazon CEO Jeff Bezos saying he supports an unspecified increase to the corporate tax rate, while Lyft cofounder and President John Zimmer supports the 28% rate.

But overall, the reaction from the business community has been somewhat tepid, as many businesses have opted to stay silent. The Post partially attributes this to the weakened relationship between the business community and the GOP, which accelerated after the January 6 insurrection on the Capitol.

Many prominent business leaders – including at least one who had previously supported President Donald Trump – spoke out against those attacks. More recently, some businesses have stepped up to voice their support for voting rights and access following the passage of a restrictive voting bill in Georgia, as some activists called for boycotts of companies that did not take action.

Republicans have come out against the proposed increase, which would bring the corporate tax to 28% from 21%. That’s still lower than the 35% rate in place prior to the Trump administration’s 2017 tax cuts. As Insider’s Joseph Zeballos-Roig reported, the GOP has instead been suggesting that average people shoulder the cost of infrastructure improvements in the form of “pay-fors.”

But another reason that the response has been tepid could be a looming compromise: Axios reported that Senate Democrats will push a 25% corporate tax rate, an amount that powerful moderate Sen. Joe Manchin has signaled his support for.

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These 3 sectors are set to boom on the back of Biden’s massive infrastructure spending plan, Morgan Stanley says

Biden
President Joe Biden has framed his infrastructure plan as a means of strengthening democracy and undermining autocracy.

  • President Biden has proposed around $4 trillion in infrastructure spending in two separate plans.
  • Morgan Stanley laid out three sectors set to benefit from the spending in the “Thoughts on the Market Podcast.”
  • The healthcare, clean energy, and cement/steel sectors were the investment bank’s top picks.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Morgan Stanley highlighted three sectors set to benefit from President Biden’s infrastructure plan in the “Thoughts on the Market Podcast” with Michael Zezas on Wednesday.

President Biden unveiled his $2.3 trillion American Jobs Plan in late March and is reportedly readying another spending package that would bring the administration’s total infrastructure spend to roughly $4 trillion.

Morgan Stanley said the cement and steel, clean energy, and healthcare sectors will be the top three beneficiaries of the historic cash infusion.

This isn’t the first time the investment bank has recommended a group of stocks based on the recent rise in infrastructure spending.

In an early April note to clients, Michael Wilson, Morgan Stanley’s Chief Investment Officer, said he believes “investors should consider a mix of traditional cyclicals and new beneficiaries that will gain from the combination of strong economic growth, as well as federal initiatives to bring US infrastructure into the 21st century.”

Clean Energy

The extension of key green energy tax credits coupled with potential new tax credits from Biden’s spending plan are set to buoy the clean energy sector moving forward, according to Morgan Stanley.

The president’s plan also contains over $170 billion for electric vehicle technology, which Morgan Stanley says will help to bolster the sector despite high valuations.

In a note to clients on April 9, Wedbush’s Dan Ives echoed similar sentiments to the investment bank, saying that he believes Biden’s plan will bring about a “green title wave” for electric vehicles.

“The lifting of the 200k EV tax credit ceiling (restored to Tesla and GM) and a likely $10k+ EV tax rebate will be a major catalyst for EV growth in the US,” Ives said.

Cement and Steel

Morgan Stanley also highlighted the obvious beneficiaries of the infrastructure spending, cement and steel companies.

With $1 trillion set to be spent on transportation, water, and affordable housing, analysts at Morgan Stanley believe we are headed for an “infrastructure supercycle.”

The investment bank said over 200 million tons of cement will be used due to the infrastructure spending alone.

However, some market commentators question how much of the spending package has already been priced in.

When asked about which sectors may benefit from infrastructure spending, Burton Hollifield, a professor of finance at Carnegie Mellon University, told Insider that he believes much of the infrastructure spending bill has already been priced into equities.

Stock prices in the sector appear to back up Hollifield’s belief. Shares of US Concrete have already jumped 62% in 2021, and US Steel has followed suit, with shares rising 33% year-to-date.

Healthcare

Finally, Morgan Stanley analysts said they believe the healthcare sector will get a boost from President Biden’s new “human infrastructure” spending.

These “human infrastructure” measures include the expansion of affordable care act subsidies and a possible lowering of the medicare age.

Morgan Stanley says these changes would be a “fundamental positive for larger healthcare providers” as there will be more healthcare business to do overall, and larger healthcare companies would have the “scale to engage profitably.”

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Secretary Pete on Biden’s remark that his infrastructure plan will create 19 million jobs – it’s more like 2.7 million

Pete Buttigieg
Secretary of Transportation Pete Buttigieg.

    • President Joe Biden said April 2 that his new infrastructure package could create 19 million jobs.
    • Transportation Sec. Pete Buttigieg clarified on Sunday that it will probably directly create 2.7 million jobs.
    • The stat came from a Moody’s report projecting 16.3 million jobs from natural growth and the $1.9 trillion stimulus.

President Joe Biden said on April 2 that his new American Jobs Plan – the first of a two-part package – could lead to the creation of 19 million new jobs.

But Secretary of Transportation Pete Buttigieg clarified on Sunday that the plan would create 2.7 million jobs – not 19 million.

In a Fox News interview with Chris Wallace, Buttigieg said he and the Biden administration “should have been more precise” when saying that the infrastructure plan would create 19 million new jobs, given that the economy was already on track to add millions of new jobs from natural job growth and the $1.9 trillion stimulus package.

“It will create 2.7 million more jobs than if we don’t do it, and that’s very important because there are people on this network and others saying with a straight face that this would somehow reduce the number of jobs,” Buttigieg said.

According to Bloomberg, Biden seemed to be citing a recent Moody’s Analytics report that projects 19 million jobs could be added over the next decade if the infrastructure plan passes; however, it also estimates that 16.3 million jobs would be added over the next decade from a combination of organic job growth jobs and the already-passed American Rescue Plan.

In his remarks, Biden also said that almost 90% of the infrastructure jobs could be filled by people without a college degree.

A March analysis from Morning Consult found that, during the coronavirus pandemic, more educated Americans saw their confidence rebound and grow. The same could not be said for lower-wage, less-educated workers, who feared for their ability to hold onto a job. Higher-educated Americans felt confident enough to ask for pay increases, the analysis showed.

Biden’s remarks were tied to the prior jobs report, which saw the economy add 916,000 jobs, far outpacing economists’ expectations of 660,000.

While different unemployment measures dropped amidst the good jobs news, the country still has a long way to go before returning to pre-pandemic levels. In a blog post, Cecilia Rouse, the chair of the Council of Economic Advisers, said there were still 8.4 million fewer jobs in March 2021 than in February 2020.

Insider’s Andy Kiersz wrote that, if the March growth rate continues, employment could reach pre-pandemic levels by January 2022. Areas like movie theaters and hotels still have a long way to go, as they continue to lag in recovery.

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Amtrak’s $80 billion plan to connect the US is the latest step in a rail revolution but has a glaring omission: high-speed rail

Amtrak Acela
Amtrak’s Acela service runs between Washington D.C., New York City, and Boston.

  • Amtrak has unveiled a plan to further connect the US by rail but it doesn’t include high-speed rail.
  • New routes will be added and current routes will be upgraded as Amtrak aims to repair its network.
  • Private companies and states have taken up the costly task of building high-speed rail on their own.
  • See more stories on Insider’s business page.

Americans are all-aboard for high-speed rail but Amtrak’s new rail plan is putting the brakes on bullet train dreams.

Amtrak is getting ready to spend $80 billion of the federal government’s money as part of President Joe Biden’s planned $4 trillion infrastructure bills. The “Amtrak Connects US” plan calls for greater rail connectivity across the US with the addition of new routes and improvement of old ones in a major step forward for America’s rail system.

But one phrase is notably missing from Amtrak’s proposal: high-speed rail. Amtrak’s fact sheet doesn’t mention the phrase even once.

Rather, Amtrak is using the billions to give service to rail-strapped cities like Phoenix, Las Vegas, and Nashville, Tennessee, and upgrade existing lines. Not one penny will be spent towards building a clean-slate high-speed rail line even though getting America’s high-speed rail network in line with those in Europe and Asia is a desire for many Americans.

Jim Mathews, president and CEO of the Rail Passengers Association, told Insider that Amtrak may still be decades away from true high-speed rail and is still readjusting from an era of extreme cost-cutting.

“As recently as three years ago, Amtrak senior leadership was out talking about how routes have to make a profit and long-distance routes shouldn’t exist,” Mathews said, referring to the tenure of former Delta Air Lines chief executive officer Richard Anderson that saw Amtrak’s most nostalgic offerings cut in a bid to save costs.

Read More: Here are 9 hurdles Biden’s infrastructure plan would have to overcome in Congress before it can become law

Before Amtrak can even consider a brand-new high-speed rail network, there’s still a backlog of repairs to work through on its existing lines. And unlike regional transit authorities, Amtrak’s network stretches from sea to shining sea, leaving a lot to maintain and update.

“There’s all these sort of boring infrastructure investments that you got to do,” Mathews said.

On the Northeast Corridor, where Amtrak has its only high-speed service with the Acela, Mathews said that it would cost around $50 billion just to get the line to a “state of good repair.” That’s 62.5% of Amtrak’s proposed $80 billion funding from the infrastructure bill in just repairs alone and not even laying the foundation for true high-speed rail in the Northeast.

True high-speed rail would require new infrastructure, including straight lines of track so trains can achieve their top speeds. In congested regions like the Northeast, that means spending millions if not billions just to purchase property along the line’s planned route.

“Politically, high-speed has a different ring to it and I think Amtrak is probably unwilling to step into that,” Mathews said. “From their point of view, they’re like, ‘Hey, we just want to run our trains. We want to run more trains and we want them to be on time.'”

Amtrak is already spread thin in its languishing nationwide network. Existing infrastructure across the US has fallen into disrepair and battles with freight railroads prohibit Amtrak from being competitive on existing lines.

Private companies have instead spearheaded the effort to bring high-speed rail to the US. Brightline built a high-speed line to connect West Palm Beach and Miami in Florida that will soon be connected all the way to Orlando. In Texas, the Texas Central Railroad is developing a high-speed rail line that will connect Dallas and Houston in only 90 minutes.

California has even taken up the mantle with a new high-speed rail line between Los Angeles and San Francisco. Construction is currently underway with the 800-mile line taking at least 14 years to complete at an estimated cost of at least $68 billion, according to Architect Magazine.

Amtrak is introducing new trains to the Acela line but those will only travel slightly faster than the current train sets. And pre-pandemic non-stop service between New York and Washington still took two hours and 30 minutes, despite being a comparable distance to the planned route between Dallas and Houston.

“What about grandma?”

Critics of Amtrak and its money-losing ways look too much at the big picture, according to Mathews, and not at the smaller journeys that are more in line with Amtrak’s original congressional charter. Only around 10% of riders take the full length of a long-distance service like the Empire Builder between Chicago and Seattle, for example, whereas most customers are taking the train between intermediary stops.

“The vast majority of trips take place in between,” Mathews said. And those short-distance trips between say Staples, Minnesota and Wolf Point, Montana, where convenient air service is a distant dream, is Amtrak’s bread and butter. Fares are comparatively lower than flying and trains can better accommodate passengers that face issues when flying, whether it be because they require medical devices or the nearest airport is hours away.

Keeping those smaller cities connected is also the reason why Amtrak rushed to get long-distance trains back to daily service after they were reduced to three-times-weekly service during the pandemic. Restoring them to daily service may have seemed counter-intuitive from a revenue perspective but the move ensures more Americans that rely on the rails have access to it.

When Amtrak does eventually enter the high-speed rail realm, it may be relegated to the lines that private companies haven’t already scooped up. But Mathews believes that’s alright because the rail corporation’s purview, after all, is to serve the entire country – profitable or not.

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Rep. Katie Porter calls Biden’s move to split up his infrastructure package ‘a big mistake’

katie porter
Representative Katie Porter (D-CA).

  • Rep. Katie Porter of California called Biden’s move to split his infrastructure plan ‘a big mistake.’
  • She argued Democrats should merge family policies into a large infrastructure plan.
  • Last month, Biden noted that 2 millions women had left the workforce since the pandemic started.
  • See more stories on Insider’s business page.

Democratic Rep. Katie Porter of California called President Joe Biden’s decision to split up his infrastructure plan into separate jobs and family components a major error.

“This idea that there are two separate buckets, a bucket of American Jobs Plan … and this idea he has a second plan coming soon that he’s called the American Families Plan. I told the White House, ‘I think this is a big mistake,'” she said in an Axios interview published Friday.

She continued: “I think it’s mislabeling what you know as president to be true, which is that all of this is about our economy and economic recovery.”

“Strong family policy is strong jobs policy,” she said. Porter previously expressed a fear that women could be left behind in the Biden plan, CNBC reported.

Biden recently unveiled a $2.3 trillion public-works plan, the first of two plans aimed at upgrading the nation’s infrastructure. The plan contains new funds to repair deteriorating roads and bridges, eliminate lead pipes from water systems, and widen the reach of broadband networks.

The second part will be known as the American Family Plan, a package expected to contain a multi-trillion investment into childcare and education. Republicans are strongly critical of the Democratic infrastructure push, arguing that its tax hikes would slam into the economy.

Last month, Biden noted that 2 millions women had left the workforce since the pandemic started.

“A lot of that is because so much extra weight of caregiving and responsibility is falling on their shoulders,” he said at a White House event. “It causes women to miss work, cut hours, and leave their jobs and care for their children and aging loved ones.”

“How many men are staying home and doing it, and the woman’s staying in the workforce?” he asked.

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2 Democratic Senators are already saying Biden’s infrastructure plan probably needs to change

Joe Manchin
Sen. Joe Manchin (D-WV).

  • Democrats in the Senate are already voicing their concerns with the infrastructure package.
  • Sen. Joe Manchin says he’s concerned about the increase to the corporate tax rate.
  • And Sen. Mark Warner has “already expressed some concerns” and wants more input.
  • See more stories on Insider’s business page.

Two Democratic senators have already voiced concerns about President Joe Biden’s $2 trillion infrastructure plan.

One of them is Sen. Joe Manchin, a moderate Democrat from West Virginia who has already proven himself to be an outsized presence in the razor-thin Democratic majority. He was also a pivotal voice against the inclusion of a $15 minimum wage in the American Rescue Plan.

Now, he’s expressed his concerns with the infrastructure package. In an interview with Talkline, a West Virginia radio show, Manchin said that, “as the bill exists today, it needs to be changed.”

Regarding Biden’s proposed increase of the corporate tax rate from 21% to 28%, Manchin indicated that he doesn’t support the 28% figure and stressed that the international average is a few percentage points lower. The rate “should have never been under 25%,” he said. “That’s the worldwide average. And that’s what basically every corporation would have told you was fair.”

When asked if he would not support a bill that raises the corporate tax rate from 21% to 28%, Manchin said: “Well, the bill basically is not going to end up that way”

Manchin also said the bill wouldn’t be passed by reconciliation “unless we vote to get on it.” When radio host Hoppy Kercheval said “they” could pass the bill by reconciliation.

“No, they can’t. Not unless we vote to get on it,” Manchin said in response. “And if I don’t vote to get on it, it’s not going anywhere.”

Meanwhile, in a briefing on Monday, Biden said he was “not at all” worried that raising that rate would drive corporations to different countries. Treasury Secretary Janet Yellen also argued in support of a global minimum tax rate today.

As Politico reports, Manchin isn’t alone: Another Democratic senator, Mark Warner of Virginia, has also expressed concerns.

“I’ve had some outreach from the White House, but it was more heads-up than input into the development of the package,” he said, according to Politico. “So I’ve already expressed some concerns.”

Getting Democrats on board with the infrastructure package will be key to its passage, as Senate Minority Mitch McConnell has already said that it won’t get any GOP votes in the Senate. That means Democrats will likely have to compromise internally amongst themselves,

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