Senator Blunt Wants $2 Trillion Infrastructure American Jobs Plan Slashed by a Third, McConnell Says No Bipartisan Support

Mandatory Credit: Photo by Shutterstock (11553986j)United States Senate Majority Leader Mitch McConnell (Republican of Kentucky), conducts a news conference in the U.
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Sen. Roy Blunt said yesterday the $2 trillion infrastructure American Jobs plan unveiled by President Biden last week is a “big mistake” and should be slashed by a third of its cost.

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Biden’s $2 trillion American Jobs Plan, a sweeping infrastructure bill which, along with his Made in America corporate tax plan, “will be fully paid for within the next 15 years and reduce deficits in the years after,” he said last week.

“I think there’s an easy win here for the White House if they would take that win, which is make this an infrastructure package, which is about 30%. Even if you stretch the definition of infrastructure some, it’s about 30% of the $2.25 trillion they’re talking about spending,” Blunt said in a Fox interview yesterday.

“I think it’s a big mistake for the administration. They know I think it’s a mistake. And I also think it would be an easy victory if we go back and look at roads and bridges and ports and airports and maybe even underground water systems and broadband. You’d still be talking about less than 30% of this entire package,” he added.

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This plan follows the $1.9 trillion American Rescue Plan signed into law earlier this month.

It includes several infrastructure segments, including building “world class” transportation infrastructure;  rebuilding clean drinking water infrastructure, a renewed electric grid and high-speed broadband to all Americans; building and retrofitting homes, schools and commercial and government buildings; solidifying the infrastructure of the “care economy”; investing in R&D; revitalizing manufacturing; and training Americans for the jobs of the future, according to the plan’s details.

Senate Republican Leader Mitch McConnell voiced opposition to the plan in a statement, calling it “a major missed opportunity by the administration” and saying there would be no bipartisan support.

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“Our nation could use a serious, targeted infrastructure plan. There would be bipartisan support for a smart proposal. Unfortunately, the latest liberal wish-list the White House has decided to label ‘infrastructure’ is a major missed opportunity by this Administration,” McConnell said in the statement.

“This plan is not about rebuilding America’s backbone. Less than 6% of this massive proposal goes to roads and bridges. It would spend more money just on electric cars than on America’s roads, bridges, ports, airports, and waterways combined,” he added.

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Biden’s proposal also includes the Made in America Tax Plan, which would “fix the corporate tax code so that it incentivizes job creation and investment here in the United States, stops unfair and wasteful profit shifting to tax havens, and ensures that large corporations are paying their fair share.” Specifically, this would translate into setting the corporate tax rate at 28% and strengthening the global minimum tax for U.S. multinational corporations by increasing the minimum tax on U.S. corporations to 21% and calculating it on a country-by-country basis so it hits profits in tax havens.

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“This proposal appears to use ‘infrastructure’ as a Trojan horse for the largest set of tax hikes in a generation,” McConnell said in the statement. “These sweeping tax hikes would kill jobs and hold down wages at the worst possible time, as Americans try to dig out from the pandemic. But don’t worry, coastal elites — House Democrats are demanding a special SALT carve-out that would cut taxes for wealthy people in blue states.”

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        About the Author

        Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

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