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Biden’s bridge-building plan can happen without bridge building


US President Jo Biden is preparing to push through his $2 trillion infrastructure plan with or without bipartisan support.

Energy Secretary Jennifer Granholm said Biden would prefer that his plan had Republican backing but, if it doesn’t, he would probably use a procedural strategy called reconciliation to allow Democrats to pass it in the Senate.

“As he has said, he was sent to the presidency to do a job for America. And if the vast majority of Americans, Democrats and Republicans, across the country support spending on our country and not allowing us to lose the race globally, then he’s going to do that,” Granholm said.

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Most Americans currently support the Democratic president’s plan, said Granholm, one of several senior Biden administration officials who promoted the proposal on television news shows on Sunday.

Since taking office in January, the Democratic president has repeatedly said he wants to work with Republicans. 

But the infrastructure plan – his second major legislative initiative – so far looks unlikely to draw more bipartisan support than his first, a $1.9 trillion Covid-19 relief package that passed with only Democratic support last month, using reconciliation.

Senate Republican leader Mitch McConnell said last week that Biden’s infrastructure plan was “bold and audacious” but would raise taxes and increase debt. He vowed to fight it “every step of the way”.

‘TAX HIKE’

Republican Senator Roger Wicker of Mississippi joined others in his party in trying to cast Biden’s plan as a tax hike rather than an effort to repair and rebuild the country’s transportation, communications, water and electrical networks.

“What the president proposed this week is not an infrastructure bill. It’s a huge tax increase,” Wicker said.

Biden’s plan would raise the corporate income tax rate after deductions to 28% from the current 21%. His predecessor as president, Donald Trump, and Republican lawmakers cut the corporate rate from 35% to 21% in 2017.

Trump repeatedly promised to tackle the nation’s crumbling infrastructure during his presidency but never delivered on that.

JOB GROWTH

The Biden infrastructure plan’s investments are long-term and badly needed to drive job growth, Brian Deese, director of the National Economic Council, said on the Fox program.

The initiatives will serve the country well into the 2030s and beyond, added Transportation Secretary Pete Buttigieg. 

“Right now, we’re still coasting off of infrastructure choices that were made in the 1950s,” Buttigieg said on NBC.

  • Reporting by Reuters

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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