Infrastructure plan should cost up to $800 billion, McConnell says ahead of BIden meeting
The parties would have to settle fundamental disputes to strike an infrastructure deal. Biden, Schumer and Pelosi have indicated they could forge ahead with legislation on their own in the Democratic-held Congress if Republicans — many of whom see blocking the president’s priorities as their best path to retaking the Capitol in the 2022 midterms — are reluctant to compromise.
The president will also meet with Sens. Joe Manchin, D-W.Va., and Tom Carper, D-Del., about infrastructure on Monday, according to the AP. Democrats would need Manchin’s support to pass a bill with a simple majority through special budget rules in the Senate split 50-50 by party. He has expressed doubts about backing more massive spending plans, and said he prefers a 25% corporate tax rate to Biden’s desired 28%.
Biden’s plan includes $400 billion to bolster care for elderly and disabled Americans, along with investments in housing and electric vehicles. Republicans do not consider those policies infrastructure.
The parties also back different methods to pay for the infrastructure improvements. Democrats want to raise the corporate tax rate to at least 25% from 21%, the level set under the 2017 GOP tax plan. Republicans are prepared to oppose any changes to their law.
GOP senators have floated electric vehicle user fees or a diversion of state and local coronavirus relief funds as means to offset infrastructure costs. McConnell also said Sunday that the existing gas tax could raise money for investments.
The Senate minority leader said he opposed “revisiting the tax bill in a way that creates additional problems for the economy.”
Sluggish hiring in April also complicated Biden’s push to pass the $2.3 trillion infrastructure plan and an additional $1.8 trillion proposal to strengthen child care, education, paid leave and tax credits for families. The president on Friday said the jobs report shows the need to vaccinate more Americans against Covid-19 and pass what he called “vital” recovery bills.
Republicans have said the $300 per week enhanced unemployment benefit set to expire in September deterred Americans from taking jobs. The president may refute those arguments during remarks on the economy set for Monday afternoon.
Several other factors could have contributed to slower than expected hiring last month. Many parents still have to watch their children during the work day as schools and care facilities reopen.
The jobs report led some Democrats to call for immediate investments in child care — which Biden’s second recovery plan would address. That legislation may not pass for months, even if it overcomes hurdles to get through Congress.
In a statement Friday, Sen. Elizabeth Warren, D-Mass., said that “if we want moms and dads to go back to work as this pandemic subsides, we need to provide them with the child care they need.”
Article source: https://www.cnbc.com/2021/05/10/biden-infrastructure-plan-mitch-mcconnell-says-bill-should-cost-up-to-800-billion.html