Analysis: President Biden Unveils American Jobs Plan

Cognizant of the breathtaking spending levels that the American Jobs Plan and recently-passed American Rescue Act saddle on the federal budget, the Administration is proposing an increase in the corporate income tax rate from 21% to 28%, along with a 21% minimum tax on global corporate earnings as the pay-fors. The White House is asserting that these tax increases would “fully pay for the investments in this plan over the next 15 years.”

On Capitol Hill, Speaker Pelosi is said to have told her Caucus to expect the package to be passed through the House by July 4, notwithstanding the potential for delays that could push its passage to the end of the month. Amidst debate on the American Jobs Plan, Speaker Pelosi will have her hands full in the House, as the second part of the President’s Build Back Better plan is expected to be announced in mid-April. The second half of the plan is said to be aimed at “helping families with the challenges like health care costs, child care, and education.”

Further funding elements of the innovation-centric American Jobs Act are said to include:

• Addressing Public Transit repair backlogs of 24000 buses, 5000 rail cars, 200 rail stations
• $85 billion to modernize existing public transportation and for transit expansion
• $80 billion in Amtrak repairs
• $174 billion investment in the Electric Vehicle (EV) market, with a goal of 500,000 EV chargers by 2030
• $25 billion for the Airport Improvement Program
• $17 Billion for inland waterways, coastal ports, and ferries
• $20 billion for a new unnamed program to connect racially divided neighborhoods
• $25 billion for a dedicated fund specifically for large projects that benefit regional or the national economy.

The $174 billion investment in Electric Vehicles demonstrates the Biden Administration’s commitment to investing in the alternative fuel market to place the United States at the forefront of this international movement. This investment will make it more likely that electric vehicles can realistically become a primary source of transportation both for individuals and companies.

Download American Jobs Plan Fact Sheet

“This is an ambitious first element of what is expected to be a $4 trillion reform program. This massive infrastructure plan highlights many needed enhancements to our national transportation and economic landscape. The real challenge is to pay for this programming while rebounding from a deep pandemic recession and controlling the national debt. The proposed corporate tax burden would be the highest in the developed world. Congress will have to weigh the costs and priorities, the timing, and the impact on jobs and global competitiveness, and make the call. Without a new source of revenue, this proposal will face daunting challenges.”

Former Rep. Phil English
Government Relations Practice Co-Chair

“The spending proposals in the President’s plan will be aggressively debated and there will likely be proposals added and deleted in the large list of investments by the Congress as a result of committee consideration and floor action in the House and Senate. In the end, there will be a fair portion of the President’s spending plan that will find support from both parties. Both Republican and Democratic members of Congress will understand that they cannot simply continue to increase the federal debt which is now at dangerous levels. Debate about proposed tax increases to pay the cost of the investment will be fierce and relentless. This is both the right and the necessary plan to begin reinvesting in our country again. We were beneficiaries of infrastructure we inherited and we must pass on to our children infrastructure that leads the world.”

Former Sen. Byron Dorgan
Government Relations Practice Co-Chair