Look for President Joe Biden and the Democratically-controlled Congress to push for an infrastructure bill in the near future.
A bill in the range of $1 – $2 trillion is likely to be introduced by Congress as part of a Democrat infrastructure plan.
The term “infrastructure” is taking on various meanings by the parties involved with the debate over a bill.
Democrats are pushing for what they call “human infrastructure“. This human infrastructure would take the form of spending in health care and education to name a couple of the targeted areas for the spending.
Representatives on the other side of the aisle in the Republican party would prefer to focus the spending on more traditional physical infrastructure projects like roads and bridges.
Currently, the Biden plan has earmarked less than 10% of the spending in the proposed bill for physical infrastructure.
One important obstacle in passing the bill is the fact that Republicans are determined to pass a bill that will not require tax increases to help fund the infrastructure projects.
If the Democrats push ahead with introduction of a higher price tag for the bill, a tax hike on corporations would likely accompany the move forward.
Corporate tax rates could increase from the current 21% to pay for a large infrastructure bill.
As mentioned, another obstacle for the Democrats is that the Republicans want to focus on spending money for physical infrastructure projects. Roads and broadband internet are items included on that list of traditional infrastructure projects.
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