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WASHINGTON (AP) – President Joe Biden aims for summer passage of an infrastructure plan that is expected to cost more than $ 3 trillion, and the White House hopes to take a more deliberate and collaborative approach with the controversial Congress than it does did so on the COVID -19 bailout, officials said Monday.
The president will announce parts of his “Build Back Better” package on Wednesday in Pittsburgh. Large-scale, the ambitious plan aims to make generational investments in infrastructure, revive domestic manufacturing, tackle climate change and keep the United States competitive with China, officials said. This could include $ 3 trillion in tax increases.
The final price is changing, but is expected to be between $ 3 trillion and $ 4 trillion. A White House official said Monday night it could end up being closer to $ 3 trillion.
While the White House stresses the urgency, it also insists it will not be seen as an emergency response like the $ 1.9 trillion virus relief bill that Biden enacted despite Republican objections earlier this month. The administration wants to see progress on the new legislation by Memorial Day and get it passed over the summer, White House officials said.
“The president has a plan to fix our infrastructure and a plan to pay for it,” White House Press Secretary Jen Psaki said. “But we certainly expect to have a discussion with members of Congress, as we move forward, on what areas they agree on, on which they don’t agree, on which they would like. whether we insist more or not. ”
The administration is setting the political pace and tone for this next big priority on Biden’s agenda. The COVID-19 bill, while widely popular with voters in both parties, has exposed the president to criticism for going it alone with only Democratic votes. White House officials believe this time around there will be many more opportunities to gain some GOP support and plan for meaningful outreach on Capitol Hill.
As congressional committees begin to grapple with individual arrangements – including those on transportation, China and others – the White House will encourage those efforts. Then it will work through the tax increases separately, according to officials.
Administration officials are sending signals that the White House will listen to suggestions and criticism from both sides and that significant changes could occur during the legislative process.
At the same time, Congressional leaders are preparing a stand-alone strategy, just as it has been done in the virus aid program, in case Congress hits a wall from the GOP opposition.
“If they share a goal of building our infrastructure for the future, but don’t like the way they’re going to offer to pay for it, we’re happy to consider their proposals,” Psaki said. “If they don’t want to pay for it, I guess they can come up with it too. Maybe they don’t support infrastructure spending. ”
The infrastructure marks the unique opportunity for Biden to succeed on an issue where his two predecessors – Barack Obama and Donald Trump – made big promises that never came to fruition.
The physical infrastructure part of the package is not just about updating roads, bridges, rail, public transport and airports. It is also expected to include broadband, electric vehicle charging stations, and investments in clean energy and home manufacturing, which will make it much more expensive than what Republicans usually argue.
During the month of April, a second kit will be unveiled that focuses on universal pre-K family leaves, paid and free community colleges.
The multibillion-dollar price tag means any package will eventually have to be associated with tax hikes, drawing Republican opposition to any infrastructure plan that reverses Trump’s 2017 corporate tax rate cuts. Biden pledged not to raise taxes on households earning less than $ 400,000 a year.
Senate Minority Leader Mitch McConnell said Monday during a shutdown in his home state of Kentucky that if the Biden administration wants to make an infrastructure bill, “Let’s make a bill on infrastructure. infrastructure. Let’s not turn it into a massive effort to raise taxes for businesses and individuals. “
Beyond tax increases, the Biden administration could also try to free up money by changing the way Medicare can negotiate the price of pharmaceutical drugs. It could also intensify IRS audits of wealthier Americans, as a recent study estimated that wealthiest taxpayers avoid paying $ 175 billion a year.
Initially, White House officials envisioned a plan that would rely more on spending, but this approach was scrapped over fears it could trigger a spike in interest rates, which in turn could push up. skyrocketing federal debt payments.
Choosing to limit the impact on the federal deficit may help the White House counter critics who say the nation’s spending imbalance is out of control.
But paying for the proposals with new revenue would also force the administration to persuade Congress to pass a package of tax increases on wealthy Americans and businesses that together would represent the biggest hike in generations.
Republicans oppose the scope of the huge package and the potential tax increases that would be needed to pay for it. With the Senate split evenly, 50-50, Democrats may very well be forced to rely on their own votes again for the passage
A key Republican, Senator Shelley Moore Capito of West Virginia, last week warned Democrats against a stand-alone approach as happened in the virus aid plan.
“I am very disappointed with what I am reading because I anticipate the same will happen,” Capito said.
Part of the group of Republicans who met Biden only to have their virus aid proposal rejected, Capito is now suspicious as Democrats pile other national priorities on top of the infrastructure package.
“I think we need to talk to the American people and say, ‘Is this what you envision with infrastructure? Is it, are these job creators? “, Did she say.
On Monday, Senate Democrats said they were looking for even more opportunities to go it alone, relying on complicated budget reconciliation rules to pass upcoming bills with a mere threshold of 51 votes, like this was made for the COVID-19 rescue plan.
Major political advisers to Majority Leader Chuck Schumer argued to the Senate parliamentarian that they could use the reconciliation provision a second time this exercise, which would be rare. Typically, the process is only used once per fiscal year or twice per calendar year.
If approved by the parliamentarian, it would essentially create twice as many opportunities this year, and the following years, for such a small majority to approve certain laws. No decision has been made, according to a Schumer assistant who was granted anonymity to share the private discussions.
The aide said Schumer wanted to maximize his options to allow Senate Democrats multiple avenues to advance Biden’s agenda in the face of possible Republican obstruction.
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