Biden's $1.7 Trillion Social Infrastructure Bill Faces Eventual Collapse Risk

Democratic Centrist Congressman Manchin Strongly Opposes
Seems to Change Stance to Support After Biden Meeting
White House Criticizes as "Breach of Promise to President and Colleagues"
Companies Begin Lobbying to Delay Global Minimum Corporate Tax Implementation

Democratic Senator Joe Manchin, who has effectively dealt a death blow to the social infrastructure bill, a key policy promoted by President Joe Biden.
[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The ambitious $1.75 trillion social infrastructure investment bill pushed by U.S. President Joe Biden is facing the risk of collapse. Corporations have begun lobbying to delay the introduction of the global minimum corporate tax, which is the funding source for infrastructure investment, threatening to shake the foundation of the Biden administration's policies.

Joe Manchin, a centrist Democratic senator, stated in an interview with conservative media Fox News on the 19th (local time), "If I cannot go home during the year-end holidays and explain this to the people of West Virginia, I cannot vote for the social infrastructure bill. I will not support the Biden administration's social infrastructure investment bill," openly expressing his opposition.

Senator Manchin cited concerns over inflation, the expansion of federal government debt, and the spread of new infections due to the Omicron variant as reasons for his opposition.

Although Manchin was initially negative about the social infrastructure bill, he seemed to lean toward support after a private meeting with President Biden, but ultimately reached this conclusion.

The congressional media outlet The Hill reported that while Manchin had been negotiating with the White House with a negative stance on the social infrastructure bill, he had never expressed such strong opposition as he did on this day. His opposition is widely seen in Washington as putting the bill at risk of collapse.

The Democratic Party holds 50 seats in the Senate, tied with the Republicans, but holds the advantage by utilizing Vice President Kamala Harris's casting vote. If Manchin opposes the bill, it becomes impossible for it to pass the Senate.

The Wall Street Journal reported that Manchin's remarks have jeopardized the future of the social infrastructure bill.

The White House, which had been expecting the passage of one of President Biden's key agendas, was shocked by the sudden remarks. WSJ cited sources saying that Manchin made the unexpected statement without any prior notice.

The White House immediately responded with criticism. White House Press Secretary Jen Psaki expressed dissatisfaction in a lengthy statement, accusing Manchin of breaking his promise. Psaki said, "Senator Manchin's remarks are a breach of the commitments made to the President and fellow senators," expressing strong dissatisfaction.

The Republican Party is jubilant. Senator Lindsey Graham, a member of the Senate Budget Committee, said, "Senator Manchin has confirmed the Senate's concerns about the social infrastructure bill," evaluating the situation.

Corporations have also begun efforts to hinder the Biden administration. They have started actions to delay the introduction of the global minimum corporate tax, which is the funding source for infrastructure investment. The 15% global minimum corporate tax was created through an agreement led by Treasury Secretary Janet Yellen with major countries around the world.

[Image source=Reuters Yonhap News]

According to the Journal, major corporations such as Honeywell, General Electric, and Boeing have launched government lobbying efforts to delay the introduction of the global minimum corporate tax as much as possible. Their argument is that the U.S. should not impose taxes until other countries around the world adopt the minimum corporate tax.

The Journal also reported that the lobbying targets include Senators Manchin and Kyrsten Sinema. Corporations are persuading them on the inevitability of implementing the minimum corporate tax.