The Build Back Better Plan is a projected $7 trillion dollar economic and infrastructure package, which includes various investments to improve highways and railways, upgrade ports, expand electric vehicle (“EV”) infrastructure, improve water and energy infrastructure and expand broadband access. Additionally, coupled with the American Jobs Plan, Biden has proposed the “Made in America Tax Plan”, which includes revenue funding provisions to support the $2 trillion dollar blueprint over the next fifteen years.
In addition to massive expenditures, the Plan is designed to create a lot of new jobs (it is, of course, called the American Jobs Plan). Put simply, it is going to take a lot of work to actually be able to achieve all of the improvements, repairs, and installations included in the Plan; improving an estimated 20,000 miles of highways, roads, and bridges is a big project, and as we know, many hands make light work. With that in mind, President Biden recently stated “If we pass this plan, the economy will create 19 million jobs” continuing by stating “That’s long-term jobs for pipefitters, healthcare workers, those who work in steel factories and the cutting-edge labs as well.” Ideally, under the Plan, the US economy would recover the more than 8 million jobs lost in 2020, in just a couple of years. Although 19 million jobs might sound extreme, on March 29, 2021, Georgetown University estimated that a $2 trillion jobs plan, of which $1.5 trillion would go toward infrastructure, “would create or save 15 million jobs over 10 years and would increase the share of infrastructure jobs from 11% to 14% of all jobs in this country, temporarily reviving the blue-collar economy.”
The American Jobs Plan
Overall, the Plan is designed to promote longer-term economic recovery and keep the United States competitive while responding to the economic devastation from the coronavirus pandemic and the climate crisis. Not all of the specific investment amounts have been identified yet, but it appears that at least $1 trillion would go to sectors that fall under the broad umbrella of climate change, clean energy and environmental justice. Additionally, below we have specifically identified a couple of categories and their planned expenditures.
This Plan request that Congress invests $621 billion in transportation infrastructure and resilience. The Plan includes some massive expenditures, including:
- $115 billion in order to improve an estimated 20,000 miles of highways, roads, and bridges;
- $174 billion for EV charging infrastructure, which will ideally incentivize and promote EVs, support the transition from diesel transit vehicles and electrify United States Postal Service fleets;
- $85 billion will be used to modernize and increase bus, transit systems, and rail services, which aims to reduce congestions and achieve equitable access in America;
- $80 billion to support Amtrak in repairing and modernizing railways; and
- $40 billion allocated to improve road safety for all Americans with efforts to reduce crashes and fatalities (half of which will be allocated to new projects in efforts to increase opportunity and access for minorities, as well as environmental justice).
The Plan recommends $100 billion to achieve universal high-speed and affordable broadband coverage, with priority for publicly owned broadband networks, and ensures funds are set aside for broadband infrastructure on Tribal lands. Moreover, the Plan calls for enhanced transparency and competition by requiring clear price disclosures and lifting barriers that favor private providers.
The Plan supports a $100 billion investment to improve the electric transmission system with the goal of achieving carbon neutrality in the electricity generation sector by 2035.
Clean Drinking Water
The Plan requests $111 billion to update and improve the American water infrastructure. It will cost around $45 billion to replace major pipes and service lines, $56 billion in clean drinking water grants, and low-cost loans to states, Tribes, Territories, and disadvantaged communities.
This is just the beginning of many other improvements that the American Jobs Plan encompasses. Workforce Development, homes, schools, commercial buildings, and research development are all a part of the Plan to improve the United States of America.
The Made in America Tax Plan
On the other hand, we have to remember that nothing in life is free. Thus, in order to support and fund the American Jobs Plan, President Biden plans to incorporate tax changes that will increase the top federal corporate income tax rate to 28 percent, which currently sits at 21 percent. Prior to 2017, The rate was at 35 percent. The administration hopes to provide more resources for the Internal Revenue Service (“IRS”) to be better at enforcing tax laws and perform a more efficient auditing regulation on large corporations. This Plan also looks to apply a minimum 15 percent tax rate on any income that is reported on financial statements for corporations with at least $100 million or more in net income that pays little to no federal income tax.