Joe Biden presented his infrastructure plan: he will seek to invest $ 2 billion and “create millions of jobs”

Joe biden He launched his $ 2 trillion infrastructure renovation plan on Wednesday, which will aim to create jobs and which he seeks to become the emblem of his administration. The announcement was made at an event in Pittsburgh, Pennsylvania.

The President of the United States said during his speech that this proposal would lead the country to be “the strongest and most innovative economy in the world”. In addition, It will “create millions of jobs” and “rebuild the backbone” of the country.

“It’s time to rebuild our economy from the bottom up, left to right. The employment plan will make us more competitive globally, ”said Biden, who explained that“ the contracts will be for American companies, formed by American workers and using American materials and products ”.

For his part, he assured that the infrastructure plan This will allow the United States to “win” the competition with Xi Jinping’s regime: “This will make us more competitive in the world, advance our national security interests, and position us to win global competition with China in the years to come.”

“This is not an infrastructure plan that will put fixes. It’s a plan that only happens once in every American generation. Nothing like this has been seen since we built the highway system and started the space race decades ago (…) Anything is possible in the United States. There is talent and innovation across the country. We have to move now. In 50 years, people will look back and say that was when the United States won the future, ”he added.

The “Build Back Better” program allocate $ 620,000 million to the transportation sector to upgrade more than 32,000 kilometers of roads and highways.

The investments would be partly financed by an increase in the corporate tax, which it would drop from 21% to 28%. The new figure, however, would remain historically low. According to the White House, the rate would remain at its lowest level since World War II; With the exception of the years when Trump’s tax reform, approved in 2017, was in effect and provided significant tax breaks for businesses.

Biden stressed on Wednesday that it was the “biggest investment in jobs” since World War II.

The new legislative offensive comes shortly after Congress approved a $ 1.9 trillion plan – the third of its kind – to undo the damage caused by the COVID-19 pandemic to the economy.

After Biden’s speech on Wednesday, an uphill battle in Congress is expected over the ambitious plan to gain approval from the chambers. The Democratic majority is very tight and tough negotiations are expected, with fierce resistance from the business community that could thwart any attempt to work with Republican lawmakers. “It appears President Biden has an insatiable appetite to spend more money and raise taxes for citizens,” the representative said in an interview. Steve scalise, from Louisiana, leader of the Republican Party in the lower house.

In his speech on Wednesday, the US president sent a direct message to Democrats and Republicans: “We can do it, we have to do it. There is nothing beyond our capabilities if we are together ”.

The Head of State, while acknowledging that he has nothing against billionaires, and that he supports the North American capitalist system, criticized large corporations for “using loopholes to avoid paying a single dime in federal income tax”: “It’s wrong”.

The next few months will test the negotiating skills of Biden, a former senator dubbed the “Old Lion” of politics by Barack Obama, of whom he was vice president in his two terms.

“The president wants to make it clear that he has a plan and is open to discussion.”said a senior White House official. “But he will not make commitments under the urgency of acting” and the need to be ambitious to “reinvent” a “new American economy”, he added.

The plan contemplates expanding “The electric car revolution” with, for example, the switch to electric buses for 20% of those intended for school transport.

It also plans to build infrastructures that are more resistant to changes linked to climate change.

Repair or build roads, bridges, railways, ports and airportsIt’s an idea that says a lot about Americans in general, as much of the country’s infrastructure dates back to the 1950s and its deterioration is unmistakable.

An additional $ 111 billion would go to replace lead water pipes and improve sewers. Broadband internet would cover the whole country with $ 100 billion. In contrast, $ 100 billion would be used to improve the power grid and provide clean electricity. The plan, which also aims to strengthen the manufacturing industry in the United States, contemplates the rehabilitation of houses, the modernization of schools, the training of workers and the renovation of hospitals.

The tax code would also be updated so that companies could not merge with a foreign company and avoid taxes by moving their headquarters to a tax haven. And among other provisions, it would increase IRS audits of companies.

But beyond the hackneyed phrase “Democrats and Republicans can agree on this issue”, reaching consensus will not be easy.

Trump and Obama, Biden’s two predecessors, also made similar phrases about possible deals and made big promises in this area, which ended up being a dead letter.

The Transport Secretary, Pete Buttigieg, who will be at the forefront of the plan, believes that this time the stars will be able to align. “We have a tremendous opportunity to win the support of both sides to think big and be bold in infrastructure,” Buttigieg said.

“There is no need to explain to Americans that we have to work on infrastructure and the reality is that the climate dimension cannot be separated” from this challenge, he said.

Biden’s choice of Pittsburgh to unveil the plan has significant economic and political resonance. Not only did he win Pittsburgh and its surrounding county to help secure the presidency, but he launched his campaign there in 2019. The city famous for the steelworks that fueled America’s industrial boom has steadily pivoted towards technology and health care., Attracting university graduates from the West. Pennsylvania, a sign of how economies can change.

With information from AFP and AP

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