Basic Systems & Services
Infrastructure is the underlying framework of a country and its economy, the fundamental facilities and systems that a country needs to function. That means all the basic stuff – highways, streets, roads, bridges, dams, sewer systems, railways, subways, airports, power plants, telecommunication, and ports. Both Republicans and Democrats agree our crumbling highways, roads, bridges, public transit, airports, housing, power plants, and electric grid are all in need of an overhaul. Our infrastructure should be modernized to meet the challenges of future developments.
President Biden’s plan for America to remain competitive in the 21st-century calls for a 4 Trillion dollar infrastructure spending. President’s plan includes $100 billion to upgrade the electric grid; $100 billion to build new public schools; $100 billion for high-speed broadband; $174 billion for electric vehicles, And money for other unorthodox items such as climate change and research initiatives. Biden also proposes $400 billion for eldercare and $25 billion to construct child care facilities. Republicans argue child care or eldercare does not fit the definition of physical infrastructure. But, for many Americans, who are left out of the job market because of young children or aging parents at home these are essential services as a new highway.
Democrats’ and Republicans’ definitions of infrastructure may be different because of geo-regional political polarization. Another major sticking point is how to pay for the 4 trillion dollar price tag. President Biden proposes a marginal hike in corporate tax rates. The maximum tax rate was reduced from 35 to 21 under President Trump’s Tax Cut and Job Creation Act of 2017. Biden wants that tax rate at 28%. But Republicans, as usual, argue such a move will hurt the “job growth”. In reality, a 14% corporate tax cut by President Trump’s Tax Cut bill did not create any significant jobs. Job grew to a pre-pandemic high of less than 3%. In reality no matter the official top rate, corporations pay only an average of 8 percent in taxes. The US experienced eight years of steady economic growth under President Obama when the top corporate tax was 35 percent. Republican’s arguments do not hold water.
If a Corporation does not show a minimum of 5% job growth, (directly or indirectly), their taxes should go up. Then we can assure that there will be job growth, in correlation with tax cuts. We can use the money to pay for infrastructure development, improve people’s lives, and become competitive in the world market. If we do not act now, we will be lagging behind other countries, like China.
Comments are closed.