Biden to Invest Additional $3 Trillion... Infrastructure Bill Outline This Week

President Joe Biden of the United States [Image source= EPA Yonhap News]

[Asia Economy Reporter Byunghee Park] President Joe Biden's infrastructure bill, pursued as the second stimulus package following the $1.9 trillion stimulus law, is expected to take shape this week.

The New York Times reported on the 22nd (local time) that the White House economic advisory team plans to deliver two bills, including an infrastructure investment bill, to President Biden this week.

One of the bills is expected to include provisions related to infrastructure and green energy investments. President Biden has been considering large-scale investments in infrastructure to stimulate the economy, emphasizing especially the expansion of environmentally conscious infrastructure. The other bill to be delivered by the economic advisory team to President Biden is known to focus on childcare and education.

The budget included in the two bills is reported to be around $3 trillion. This $3 trillion amount corresponds to about 13% of the United States' Gross Domestic Product (GDP). The $1.9 trillion stimulus law signed by President Biden on the 12th passed amid unanimous opposition from all Republican members of both the House and Senate. The Republican Party has strongly opposed large-scale fiscal spending.

Therefore, the ruling Democratic Party and the Republican Party are expected to sharply clash again over the additional $3 trillion fiscal spending. There are already predictions that the conflicts will be even more intense than during the $1.9 trillion stimulus law.

The Biden administration plans to pursue tax increases alongside additional large-scale fiscal spending to reduce the government's burden. In this regard, a plan is underway to raise the corporate tax rate from 21% to 28% and to impose additional taxes on high-income earners with annual incomes over $400,000.

However, Senate Minority Leader Mitch McConnell expressed opposition to the tax increase, calling it a Trojan horse. He said the tax increase plan pushed by the Democrats is a leftist policy that will also reduce jobs. McConnell also claimed that former President Donald Trump's economic policies showed better results before COVID-19, citing low unemployment rates.

Meanwhile, White House Press Secretary Jen Psaki said, "President Biden and the White House advisory team are reviewing tax reforms that invest in working families and reward labor rather than wealth," but added, "However, discussions are ongoing, and current expectations about economic policies do not reflect the White House's views."