Report: Biden Infrastructure Plan to Spend $4 Trillion, Increase Taxes by $3 Trillion
President Joe Biden’s infrastructure plan may include $4 trillion in spending and $3 trillion in increased taxes, according to a report released Monday.
The Washington Post reported that Biden’s infrastructure plan might include $4 trillion in new spending and $3 trillion in tax increases.
Members of the White House Economic Council reportedly remain worried about the increase in spending.
“The officials worried that the large gap between spending and revenue would widen the deficit by such a large degree that it could risk triggering a spike in interest rates, which could in turn cause federal debt payments to skyrocket, said the people familiar with the matter,” the Post’s Jeff Stein wrote.
The infrastructure plan follows as Biden recently signed the Democrats’ partisan $1.9 trillion coronavirus package.
The reported Biden proposal would serve as one of the largest tax hikes in generations. This runs in contrast to President Donald Trump’s administration, which cut taxes with the Tax Cuts and Jobs Act.
Democrats also reportedly disagree over if they should focus on physical infrastructure such as roads and bridges compared to social welfare spending such as child care.
Celinda Lake, a Democrat pollster who worked for Biden’s 2020 campaign, said:
We know that Republicans and particularly blue-collar men really like the physical building kind of infrastructure and see that as leading to good paying jobs for men in particular. And women and the Democratic base really respond to what you might call softer infrastructure — child care; school; caregiving responsibilities — which have come home very vividly during covid. It’ll be a challenge, but they have a major opportunity here to do both in a way that both helps these constituencies and is majorly appealing to them as voters.
Passing another large spending bill remains a daunting task for Democrats that passed their coronavirus package on partisan lines through the House and the Senate.
The Senate remains split at 50-50 and Democrats may have to use budgetary reconciliation to pass the large infrastructure spending package.
This may explain why Senate Majority Leader Chuck Schumer (D-NY) is exploring using reconciliation for additional time to pass another spending bill using only a simple majority. Normally, Congress can only use budgetary reconciliation once per fiscal year.
Sean Moran is a congressional reporter for Breitbart News. Follow him on Twitter @SeanMoran3.
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