5.1.21
“Infrastructure – Biden’s Wasteful $2.3 Trillion American Jobs Plan – PT. 2 of 2”
By Henry W. Burke
Joe Biden and the other Democrats have labeled their new spending bill as an “Infrastructure” plan. In the same way that their COVID Relief Bill (“American Rescue Plan”) included only about 9 % for COVID relief, this so-called “Infrastructure” plan provides only 24 % for Infrastructure. The bulk of the spending is for their new left-wing agenda of “Climate Change-Green Energy.”
The overall cost for the Infrastructure Bill (“American Jobs Plan”) is a whopping $2.27 Trillion!
As shown in Table S below, Infrastructure spending comprises $553 Billion or 24 % of the total $2,270 Billion ($2.27 Trillion). Climate Change-Green Energy makes up $899 Billion or 40 % of the total spending. The Buildings and Homes category includes spending of $418 Billion (18 % of total). The final component is Caregiving for Elderly and Disabled at $400 Billion (18 % of the total spending).
In the loosely organized 80-page White House document (“The American Jobs Plan”), it is very difficult to find the spending amounts for each item. Because the Biden document is poorly written (with overlapping items), numerous spending figures and totals have been produced. The White House document does not even list the grand total spending figure!
Tables 1 - 4 list the spending amounts for the four areas of spending: Infrastructure, Climate Change, Buildings and Homes, and Caregiving.
Table S -- Summary Total – Biden’s Democrat “Infrastructure”- American Jobs Plan
|
Description |
Amount ($ Billions) |
Percentage of Total |
| Infrastructure | $553 | 24 % |
| Climate Change | $899 | 40 % |
| Buildings and Homes | $418 | 18 % |
| Caregiving | $400 | 18% |
| Total | $2,270 Billion | 100 % |
Source:
“Fact Sheet: The American Jobs Plan” -- The White House, 3.31.21
Table 1 – Biden Infrastructure
|
Description |
Amount ($ Billions) |
| Roads and Bridges | 115 |
| Road Safety | 20 |
| Public Transit | 85 |
| Railroads | 80 |
| Airports | 25 |
| Ports and Inland Waterways | 17 |
| Drinking Water, Water Storage & Wastewater | 111 |
| Broadband | 100 |
| Total Infrastructure | $553 Billion |
Table 2 – Biden Climate Change-Green Energy
|
Description |
Amount ($ Billions) |
| Electric Vehicles | 174 |
| Electric Grid | 100 |
| Infrastructure Resiliency | 50 |
| Plug Oil and Gas Wells | 16 |
| Remediate Superfund Sites | 5 |
| Domestic Manufacturing-Clean Energy | 52 |
| Clean Energy Manufacturing | 46 |
| Clean Energy Accelerator | 27 |
| Technology-Climate Crisis | 35 |
| R & D Infrastructure in Labs | 20 |
| R & D at Historically Black Colleges (20 + 10) | 30 |
| R & D Small Business | 31 |
| R & D Innovation and Job Creation | 30 |
| National Science Foundation | 50 |
| Regional Innovation Hub | 20 |
| Research Incubator | 15 |
| New Commerce Dept. Office - Monitor Industry | 50 |
| Workforce Development | 48 |
| Climate Civilian Corps | 10 |
| Dislocated Workers | 40 |
| Connect Neighborhoods | 20 |
| Prevent Future Pandemics | 30 |
| Total Climate Change-Green Energy | $899 Billion |
Table 3 – Biden Buildings and Homes
|
Description |
Amount ($ Billions) |
| Build and Retrofit Homes (Sustainable) | 213 |
| Federal Buildings | 10 |
| Public Schools | 100 |
| Community Colleges | 12 |
| Childcare Facilities | 25 |
| Public Housing | 40 |
| VA Hospitals | 18 |
| Total Buildings and Homes | $418 Billion |
Table 4 – Biden Caregiving for Elderly, Disabled & Children
|
Description |
Amount ($ Billions) |
| Caregiving for Elderly and Disabled | 400 |
| Total Caregiving for Elderly | $400 Billion |
Biden’s Tax Plan
In Biden’s “The American Jobs Plan,” the Democrats hope to pay for the huge $2.3 Trillion spending measure by changing the tax rates. The primary mechanism is increasing the Corporate Tax Rate from the current 21 % to the new proposed 28 %.
Biden’s proposed tax plan would make the U.S. Corporate Tax Rate the second highest of the G20 countries! When combined with state taxes, the tax rate on U.S. corporations would be 32.3 %. This places U.S corporations at the second highest tax rate position, second only to Brazil at 34 %.
As a result of the Biden tax plan, wages would drop by $840 per year for the median worker. Total hours worked would fall; this decrease is equivalent to the loss of 500,000 full-time jobs.
Corporate Income Taxes make up only 7 % of Total Federal Revenue. ($230 Billion/ $3,463 Billion = 6.6 %) The Actual CBO Federal Budget Figures for 2019 (before the pandemic) show the following numbers:
Revenue SourceActual 2019 ($ Billions)
Indiv. Income Taxes 1,718
Payroll Taxes 1,243
Corporate Inc. Taxes 230
Other272
Total $3,463 Billion
https://www.cbo.gov/publication/56542
The Heritage Foundation provided some estimates on revenue from the proposed tax change. The current corporate revenue under the present 21 % Corporate Tax Rate is about $240 Billion per year. Under the new 28 % Corporate Tax Rate, the projected tax revenue would be about $320 Billion per year. This is an assumed increase of $80 Billion per year. However, this is smaller than the income lost as corporations respond to the higher tax rate.
Heritage calculates that the Biden Proposal will create $2.65 Trillion in spending over the 10-year budget window. The new tax rates will not even come close to paying for the new spending! Without considering the time value of money, it would take over 33 years to pay off the spending plan. ($2,650 Billion/ $80 Billion per year = 33 Years) Quite the contrary, tax increases invariably lead to reduced tax revenues. This Biden spending folly will stifle the economy, produce lower revenues, and lead to runaway inflation!
https://www.cbo.gov/publication/56542
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To see Part 1 of Infrastructure, follow this Link:
Infrastructure – Part 1: Republican Senatorial Plan
https://www.educationviews.org/infrastructure-part-1-republican-senatorial-plan/
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