Build

Biden's $2.3T makeover plan: what’s in it, and why it could reshape America's future

Monday, April 5, 2021 by Robinhood Snacks | Disclosures

Extreme makeover, US edition

The I-90 needs a spa day... More like a spa decade. Last week, Biden unveiled his long-awaited $2.3T infrastructure plan. TLDR: give America's old infrastructure a major facelift. It's currently rated a C- (passable, but not LinkedIn-able). The plan also seeks to make America as green as the inside of a perfectly ripe avo. Some highlights:

  • $621B for transportation projects. Including: repairing 10K bridges, and modernizing roads, airports, and 20K miles of highways. Also: building a network of 500K electric vehicle chargers by 2030.
  • $400B for long-term care facilities for the elderly and disabled.
  • $300B to boost manufacturing and make the US less China-reliant, including strengthening the chip supply chain.
  • $213B to build and update affordable housing, and $100B to modernize schools. Plus: $100B to bring high-speed broadband to all Americans.

Like mink eyelash extensions... this makeover is pricey — $2.3T over eight years. It would be the biggest federal investment program since the '60s Space Race. Biden is trying to get the plan approved by summer. But that could be tough in the narrowly divided Congress...

  • The plan would be paid for over 15 years by raising corporate taxes, including bumping the corporate tax rate to 28% from 21%. Republicans cut it to 21% from 35% in 2017.
  • Pushback: Republicans support infrastructure investments, but aren't fans of tax hikes. While the GOP worries the proposal is too splurge-y, some Progressives say it isn't big enough.
THE TAKEAWAY

The US economy is at a crossroads... No infrastructure pun intended. Covid expanded the government's role in American lives (think: historic spending on the #StimulusTrilogy). One year and $5T+ later, the pandemic is waning... and America is at a crossroads. If Biden's plan passes, it would chart a post-pandemic future in which Uncle Sam plays a major role. These unprecedented investments could spur sustainable economic growth and help reduce inequality. On the flip side, higher taxes could mean lost profits for companies, which could affect wages and growth.