President Biden's American Jobs Plan in a Nutshell

Biden’s bold infrastructure plan is needed and timely.

President Joe Biden Image: courtesy The Washington Post

(SAN FRANCISCO, Calif.) - President Joe Biden unveiled his more than $2.25 trillion American Jobs Plan (Plan), which would inject money into roads, bridges, airports, broadband, electric vehicles, housing and job training over ten years while hiking the corporate tax rate to 28% after Republicans had cut it to 21% from 35% as part of their 2017 tax law.

U.S. infrastructure received only a C- grade up from a D+ in 2017, from the American Society of Civil Engineers in its 2021 Report Card for America’s Infrastructure.

“This is good news and an indication we’re headed in the right direction, but a lot of works remains.” Thus, Biden’s bold infrastructure plan is needed and timely.

Senate Minority Leader Mitch McConnell has pledged that no Senate Republicans will vote for President Biden’s Plan and vowed to fight the bill “every step of the way.” So much for Congressional bipartisanship.

Because of the Senate filibuster rule, the Plan will have to pass through budget conciliation. However, Senator Joe Manchin (D-WV) objects to a raise of the corporate tax to 28%, preferring 25%. Senator Manchin is also against eliminating the filibuster rule.

In addition, Senator Kyrsten Sinema (D-Ariz.) continues to be against changing the filibuster rule.

A recent survey, however, shows that 73% of U.S. voters— including 57% of republicans — back Biden’s infrastructure plan and 65% of voters support corporate tax increases to fund the Plan. Now that’s bipartisanship.

While increasing the corporate tax rate from 21% to 28% is popular, unfortunately, too many corporations rarely pay this amount. In fact, many corporations pay little or no taxes. At least 55 big companies paid zero federal income taxes in 2020.

In the 1950s, ’60s and ’70s, many corporations paid about half of their profits to the federal government to help pay for the U.S. military and for investments in roads, bridges, schools, scientific research and more.

Since the mid-20th century, however, politicians of both political parties have supported cuts in the corporate-tax rate, often under intense lobbying from corporate America.

The cuts have been so large — including in former President Donald Trump’s 2017 tax overhaul, which failed to address loopholes that enable tax dodging. The Democrats will have to close tax loopholes in order to pay for the Plan.

The Democrats have their work cut out for them to get 50 Senator votes if they want to pass the Plan and for that matter, the rest of Biden’s agenda.