President Joe Biden says his proposal for an aggressive series of infrastructure investments would require USD 2.3 trillion in spending over eight years but could create millions of jobs. It would be funded by higher corporate taxes.
A closer look at where the money is going and where it's coming from:
INFRASTRUCTURE PROJECTS
— USD 115 billion to modernize the bridges, highways and roads that are in the worst shape. The White House outline estimated 20,000 miles (32,187 kilometers) of roadways would be repaired, while economically significant bridges and 10,000 smaller bridges would get fixed.
— USD 85 billion for public transit, doubling the federal government's commitment in an effort to shorten the repair backlog and expand service.
— USD 80 billion to modernize Amtrak's heavily trafficked Northeast Corridor line, address its repair backlog and improve freight rail.
— USD 174 billion to build 500,000 electric vehicle charging stations, electrify 20 percent of school buses and electrify the federal fleet, including US Postal Service vehicles.
— USD 25 billion to upgrade air travel and airports and USD 17 billion for waterways and coastal ports.
— USD 20 billion to redress communities whose neighborhoods — typically nonwhite — were divided by highway projects.
— USD 50 billion to improve infrastructure resilience in the aftermath of natural disasters.
— USD 111 billion to replace lead water pipes and upgrade sewer systems.
— USD 100 billion to build high-speed broadband that provides 100 percent coverage for the country.
— USD 100 billion to upgrade the resilience of the power grid and move to clean electricity, among other power projects.
— USD 213 billion to produce, preserve and retrofit more than 2 million affordable houses and buildings.
— USD 100 billion to upgrade and build new schools.
— USD 18 billion to modernize Veterans Affairs hospitals and clinics, and USD 10 billion for federal buildings.
— USD 400 billion to expand long-term care services under Medicaid.
— USD 180 billion invested in research and development projects.
— USD 300 billion for manufacturing, including funds for the computer chip sector, improved access to capital and investment in clean energy through federal procurement.
— USD 100 billion for workforce development.
TAX INCREASES
Biden's plan would finance projects by:
— Raising the corporate tax rate from 21 percent to 28 percent, one of the measures that over 15 years would cover the cost of the infrastructure program and then help to reduce the budget deficit.
— Imposing a 21 percent global minimum tax, so that companies cannot avoid taxes by shifting income to low-tax countries.
— Making it harder for businesses to merge with foreign companies to avoid US taxes, a process known as inversion.
— Eliminating tax breaks for companies that shift assets abroad, and denying deductions for offshoring jobs.
— Imposing a 15 percent minimum tax on the income that corporations report to shareholders.
— Eliminating tax preferences for the fossil fuels sector.
— Increasing IRS audits of large corporations.
First Published: Apr 1, 2021 3:22 PM IST
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