United States: White House cuts cost of ambitious infrastructure plan to convince Republicans | International

Republican opposition to President Joe Biden’s ambitious infrastructure plan has forced the White House to cut its original budget. The Joe Biden administration presented a counter-offer on Friday worth $ 1.7 trillion (1.39 trillion euros), instead of the expected 2.25 trillion euros (1.85 million euros). euros), to push the initiative forward in Congress, a process Democrats hoped to complete before July. 4. The new offer responds to a package of measures presented by a group of six Republican lawmakers worth $ 568 billion, well below the numbers managed by the White House. The reduction has failed to convince their political opponents “as insufficient” and the two sides remain far apart in everything from the size of the plan to how to finance it.

White House spokeswoman Jen Psaki announced at noon on Friday that the contents of the new proposal would be known late today. The counter-offer excludes funds for research and development, supply chains, manufacturing and small businesses, which will be diverted to another legislative initiative pending in Congress.

Biden had made the ambitious infrastructure plan – two-pronged, physical or material, basic and social amenities, to promote public education or care for the elderly, among other goals – a priority from the first day in office, but he has always maintained that he aspires to reach consensus with Republicans on a general or basic package, theoretically compromise between the two parties.

The new proposal reduces the provision to generalize broadband access in rural areas from $ 100.00 million to $ 65 billion, and from $ 159 billion to $ 120.00, the amount intended for construction or the modernization of roads, bridges and major projects, explained the spokesperson. the White House. The Republicans plan to allocate 48,000 million for this purpose. While the digital divide is particularly palpable in non-urban areas, it also reveals structural inequalities. Democrat-led New York City recently offered free broadband access to 30,000 low-income households particularly affected by the pandemic.

“This proposal shows the willingness to compromise by reducing the size [de algunos proyectos], cediendo en algunas áreas that its important para el presidente … mientras se mantiene firm in aquellas más vitales para reconstruir nuestras infraestructuras y crear las industrias del futuro ”, ha añadido Psaki sobre el plan, que también pretende dar respuesta a los retos del climate change.

At the root of the disagreement between Republicans and Democrats is the alleged increase in taxes on the highest incomes with which Biden wants to finance part of the investments. The White House was forced to remember this Friday that the president agrees not to raise taxes on Americans who come in to less than $ 400,000 a year; it targets taxpayers who earn more than this amount, which it intends to tax with an increase in the tax rate of two and a half points, to 39.6%.

The other fundraising vehicle to implement the infrastructure plan is a tax reform project to make companies pay more and repatriate the profits of those who pay taxes outside the United States, to more advantageous countries on the tax plan like Ireland. The proposed increase in corporate tax is 28%, against 21% in effect thanks to the tax reform of Donald Trump in 2017. Centrist Democrats advocate an intermediate solution, around 25%.

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