March 31, 2021
BREAKING TAX NEWS | Biden administration calls for infrastructure plan with tax increases
The White House on March 31 outlined the $2 trillion American Jobs Plan that President Biden will unveil later today in Pittsburgh, calling for investments in roads and bridges, broadband, and R&D financed with tax increases that, for the most part, were outlined during the Presidential campaign. These include raising the corporate tax rate from 21% to 28% and making major changes to the TCJA's international tax provisions. The second part of the Build Back Better plan, focused on social spending like health care, childcare, and education, is expected to be detailed in the coming weeks, and will include additional tax proposals, White House Press Secretary Jen Psaki said on MSNBC this morning.
The American Jobs Plan calls for a renewed electric grid, and high-speed broadband for all; creating jobs and raising wages and benefits for essential home care workers; and revitalizing manufacturing, securing US supply chains, investing in R&D, and providing training for "the jobs of the future." The latter category calls for $50 billion in semiconductor manufacturing and research, as called for in the bipartisan CHIPS Act. The plan also calls for a $174 billion investment in electric vehicles.
Details on the proposed tax increases will likely be included in the President's FY 2022 budget plan. According to a fact sheet released this morning, however, the Made in America Tax Plan proposed alongside the American Jobs Plan:
"If passed alongside President Biden's Made in America corporate tax plan, it will be fully paid for within the next 15 years and reduce deficits in the years after," the fact sheet states.