US President Joe Biden promised to create millions of jobs with a gigantic infrastructure investment program. In a speech, he explained the plan to invest more than $ 2 trillion in improving roads, internet connections and greening the American economy.
He wants to pay for these expenses through higher taxes for companies.
Biden touted his investment plans, which come on top of his $ 1.9 trillion corona support package, as the most significant investment in American jobs since World War II. “It creates millions of jobs, and those are well-paying jobs,” he said. He added that specific experts on Wall Street were even considering 18 million new jobs thanks to the investment plans.
With the American Jobs Plan, as the investment program has been dubbed, the US represents the most significant increase in federal government spending that is not intended for defence, according to Biden. With that, the White House under the Democrat is clearly turning left towards a more significant government role in steering the economy. In a few weeks, Biden will also present another excellent plan for American families.
In addition to the jobs generated by the hundreds of billions in public money, the US’s competitiveness would also increase. This is urgently needed, says Biden, given China’s rise as an economic and technological superpower. “This is driving American innovation in markets that are up for grabs, such as batteries, chips and clean energy.”
In his speech, Biden emphasized the need for tax reforms to fund investments. He, therefore, wants to increase taxes from 21 to 28 percent over the next fifteen years. He argued that this is still lower than the 35 percent rate that companies faced from World War II to 2017. Biden’s predecessor Donald Trump lowered corporate taxes to the current rate shortly after taking office. Biden also wants to close loopholes in tax laws that allow large corporations to avoid US taxes through foreign subsidiaries.
Biden wants both his own Democratic party and Republicans to back his plans. That will be difficult because tax increases are very controversial in the Republican camp. There was also criticism from the Democratic side from the progressive flank. He thinks that government spending should be even higher.