Tag: 21%

Does Biden’s Infrastructure Plan Have a Chance?

By Todd Lassa

Rebuilding infrastructure -- addressing the dangerous bridges and crumbling interstate highways -- was perhaps the only major issue with which House Speaker Nancy Pelosi, D-CA, and her caucus agreed with former President Trump. After nine Infrastructure Weeks (plus Trump’s August 2016 campaign pledge) the last possibility under a Republican president of fixing the broken itself crumbled under the weight of the more-immediate coronavirus pandemic – even if the former president’s critics said COVID-19 didn’t seem to be of much concern to him. 

It’s easy to forget that President Trump unveiled a $1.5-trillion proposal in February 2018, as The New York Times reminds us, but were overshadowed by a couple of White House scandals. In April 2019, with Pelosi re-installed as speaker after Democratic victories in the mid-terms, the White House and Capitol Hill Democrats announced they had reached agreement on a $2-trillion infrastructure package to upgrade highways, railroads, bridges and broadband. But Trump “stormed out” of a meeting to discuss how to pay for it, saying he would not return to negotiations until House Democrats stopped investigating him.

President Biden’s $2.3-trillion plan unveiled earlier this month isn’t much costlier. Senate Minority Leader Mitch McConnell has said “there would be no Senate Republican votes for the infrastructure bill,” columnist Juan Williams wrote in The Hill.“Full stop.” Capitol Hill Republicans say the bill is full of Democratic social engineering dream programs, and they’re opposed to Biden’s proposal to raise the corporate tax rate from the 21% historic low set by President Trump, on up to 28%.

To the Bernie Sanders/Alexandria Ocasio-Cortez wing of the Democratic Party, $2.3-trillion isn’t nearly enough. But the Biden administration has signaled it is willing to negotiate with Republicans in order to get at least some support. The White House met with congress members from both parties on Monday, April 12. Biden will need to convince 10 Republican senators to vote for the package to avoid using the arduous reconciliation procedure (the Senate parliamentarian has ruled it is allowed a second time this fiscal year). 

And even without the support of 10 Republicans to vote for cloture on a filibuster, Biden will have to convince fellow Democrat Joe Manchin III, senator from West Virginia, just to get to 51 votes, including Vice President Harris. 

Key infrastructure provisions up for negotiation, according to the AP:

•$115 billion to modernize bridges, highways and roads.

•$85 billion for public transit to shorten the repair backlog and expand services.

•$89 billion to modernize Amtrak’s popular Northeast Corridor line and address its repair.

•$174 billion to build 500,000 electric vehicle charging systems, electrify 20% of school buses and electrify the federal fleet, including U.S. Postal Service vehicles.

•$100 billion to build high-speed broadband in order to provide 100% coverage across the country – a sort of 21st Century Tennessee Valley Authority project.

•$100 billion to upgrade the nation’s power grid resilience, and move toward clean electricity, and related projects.

•$20 billion to redress communities whose neighborhoods were divided by those Eisenhower-spawned highway projects. This affects mostly non-white neighborhoods.

•$111 billion to replace lead water pipes and upgrade sewer systems.

•$50 billion to improve infrastructure resilience to counter natural disasters.

•$180 billion in research & development projects.

•$300 billion for manufacturing, including funds for the computer chip sector (it would be nice during a pandemic not to have to wait for ships full of them to arrive from China), improved access to capital, and clean energy investment. 

That’s $1.324 trillion, leaving nearly $976 billion for such programs as money to build, preserve and retrofit more than 2 million affordable houses and buildings and expansion of long-term services under Medicaid (at $400-billion, the single costliest line item). 

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It’s Time for Infrastructure, Not for Corporate Tax Hikes

By Bryan Williams

So what is a Republican not to like about infrastructure? You know, spending our tax-payer dollars on things that benefit all of us instead of, say, the harder-to-see societal gains that $2 billion a year in aid to Israel or the $6 million each for an anti-radiation guided missile attached to an Air Force bomber brings. As with previous fits and starts to infrastructure bills, this one seems no different. The center column tells of Trump’s own infrastructure plan that would have cost nearly as much as Biden’s. It has been touted for years now – at least the past three to four election cycles – that “infrastructure should be the one thing both parties can agree on.”  And yet … here we are in 2021 still trying to get it done.

I see this latest effort as kind of ho-hum. This country has sustained three rounds of massively expensive COVID-19 stimulus bills, each in the trillions – with a t—of dollars, and the fiscal sky has not fallen. And yeah, I used to be right with (former) Rep. Paul Ryan, R-WI, and other fiscal hawks who said our children will end up paying for our profligacy. I remember hearing that in the ‘90s when I was a kid. Sure the national debt has gone up a lot, but the United States is still considered the most powerful nation in the world. We have the most advanced, most powerful military, and we just landed our fourth rover on another planet, this time with a miniature helicopter on board to fly around Mars. So yeah, the argument that all this debt will hamstring our society rings a little hollow.

The one thing that grinds my gears are the taxes Biden wants to raise on corporations after three short years of the new, low rate that has finally made America competitive with the rest of the world. Businesses like stability, right? Why raise their taxes when they are just starting to see the light at the end of the tunnel after a year of pandemic shutdowns? Seems like a bad idea to raise taxes on the companies that will be hiring all of us back.

And why does it all have to be in one massive omnibus bill? Haven’t we all become tired of these huge tomes that become “law?”  Remember the words, “We have to pass it to find out what’s in it [because it’s too big to read],” when the Affordable Care Act was being negotiated? Reminds me of Michael Scott (Steve Carell) from The Office. When asked if he ever read Lee Iacocca’s book, “Talking Straight,” he answered, “Read it? I own it! But no, I have not read it.”  Let’s break this bill up into its constituent parts so the general public, as well as congressmembers and their staff have time to read all its components, and even understand it. One bill for roads, one bill for broadband, etc. This may slow down the process, but hey, we’ve waited this long, right?

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