Infrastructure – Part 2: Biden’s Wasteful $2.3 Trillion American Jobs Plan

May 1, 2021 by

Biden's proposed infrastructure spending is wasteful, destructive and  corrupt - Washington Times

Infrastructure – Part 2:

Biden’s Wasteful $2.3 Trillion American Jobs Plan

By Henry W. Burke

4.29.21

Joe Biden and the other Democrats have labeled their new spending bill as an “Infrastructure” plan.  In the same way that their COVID Relief Bill (“American Rescue Plan”) included only about 9 % for COVID relief, this so-called “Infrastructure” plan provides only 24 % for Infrastructure.  The bulk of the spending is for their new left-wing agenda of “Climate Change-Green Energy.” 

The overall cost for the Infrastructure Bill (“American Jobs Plan”) is a whopping $2.27 Trillion! 

As shown in Table S below, Infrastructure spending comprises $553 Billion or 24 % of the total $2,270 Billion ($2.27 Trillion).  Climate Change-Green Energy makes up $899 Billion or 40 % of the total spending.  The Buildings and Homes category includes spending of $418 Billion (18 % of total).  The final component is Caregiving for Elderly and Disabled at $400 Billion (18 % of the total spending).

In the loosely organized 80-page White House document (“The American Jobs Plan”), it is very difficult to find the spending amounts for each item.  Because the Biden document is poorly written (with overlapping items), numerous spending figures and totals have been produced.  The White House document does not even list the grand total spending figure!

Tables 1 – 4 list the spending amounts for the four areas of spending: Infrastructure, Climate Change, Buildings and Homes, and Caregiving. 

Table S — Summary Total – Biden’s Democrat “Infrastructure”- American Jobs Plan

DescriptionAmount($ Billions)Percentageof Total
Infrastructure     $553        24 %
Climate Change     $899        40 %
Buildings and Homes     $418        18 %
Caregiving     $400        18%
  Total  $2,270 Billion      100 %

Source:

“Fact Sheet: The American Jobs Plan” — The White House, 3.31.21

https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/

Table 1 – Biden Infrastructure

DescriptionAmount($ Billions)
Roads and Bridges    115
Road Safety      20
Public Transit      85
Railroads      80
Airports      25
Ports and Inland Waterways      17
Drinking Water, Water Storage & Wastewater    111
Broadband    100
  Total Infrastructure  $553 Billion

Table 2 – Biden Climate Change-Green Energy

DescriptionAmount($ Billions)
Electric Vehicles   174
Electric Grid   100
Infrastructure Resiliency     50
Plug Oil and Gas Wells     16
Remediate Superfund Sites      5
Domestic Manufacturing-Clean Energy     52
Clean Energy Manufacturing     46
Clean Energy Accelerator     27
Technology-Climate Crisis     35
R & D Infrastructure in Labs     20
R & D at Historically Black Colleges (20 + 10)     30
R & D Small Business     31
R & D Innovation and Job Creation     30
National Science Foundation     50
Regional Innovation Hub     20
Research Incubator     15
New Commerce Dept. Office – Monitor Industry     50
Workforce Development     48
Climate Civilian Corps     10
Dislocated Workers     40
Connect Neighborhoods     20
Prevent Future Pandemics     30
  Total Climate Change-Green Energy$899 Billion

Table 3 – Biden Buildings and Homes

DescriptionAmount($ Billions)
Build and Retrofit Homes (Sustainable)   213
Federal Buildings     10
Public Schools   100
Community Colleges     12
Childcare Facilities     25
Public Housing     40
VA Hospitals     18
  Total Buildings and Homes$418 Billion

Table 4 – Biden Caregiving for Elderly, Disabled & Children

DescriptionAmount($ Billions)
Caregiving for Elderly and Disabled   400
  Total Caregiving for Elderly$400 Billion

Biden’s Tax Plan

In Biden’s “The American Jobs Plan,” the Democrats hope to pay for the huge $2.3 Trillion spending measure by changing the tax rates.  The primary mechanism is increasing the Corporate Tax Rate from the current 21 % to the new proposed 28 %.

Biden’s proposed tax plan would make the U.S. Corporate Tax Rate the second highest of the G20 countries!  When combined with state taxes, the tax rate on U.S. corporations would be 32.3 %.  This places U.S corporations at the second highest tax rate position, second only to Brazil at 34 %. 

https://www.heritage.org/taxes/commentary/bidens-business-tax-hikes-would-be-self-inflicted-mistake-america

As a result of the Biden tax plan, wages would drop by $840 per year for the median worker.  Total hours worked would fall; this decrease is equivalent to the loss of 500,000 full-time jobs.

Corporate Income Taxes make up only 7 % of Total Federal Revenue.  ($230 Billion/ $3,463 Billion = 6.6 %)  The Actual CBO Federal Budget Figures for 2019 (before the pandemic) show the following numbers:

Revenue Source                      Actual 2019 ($ Billions)

Indiv. Income Taxes                1,718

Payroll Taxes                          1,243

Corporate Inc. Taxes                 230

Other                                         272

          Total                              $3,463 Billion

https://www.cbo.gov/publication/56542

The Heritage Foundation provided some estimates on revenue from the proposed tax change. The current corporate revenue under the present 21 % Corporate Tax Rate is about $240 Billion per year.  Under the new 28 % Corporate Tax Rate, the projected tax revenue would be about $320 Billion per year.  This is an assumed increase of $80 Billion per year.  However, this is smaller than the income lost as corporations respond to the higher tax rate.

https://www.heritage.org/taxes/report/the-long-run-economic-effects-raising-the-corporate-tax-rate-28-percent

Heritage calculates that the Biden Proposal will create $2.65 Trillion in spending over the 10-year budget window.  The new tax rates will not even come close to paying for the new spending!  Without considering the time value of money, it would take over 33 years to pay off the spending plan.  ($2,650 Billion/ $80 Billion per year = 33 Years) Quite the contrary, tax increases invariably lead to reduced tax revenues.  This Biden spending folly will stifle the economy, produce lower revenues, and lead to runaway inflation!

https://www.cbo.gov/publication/56542

==============

To see Part 1 of Infrastructure, follow this Link:

Infrastructure – Part 1: Republican Senatorial Plan

Print Friendly, PDF & Email