Republicans dangle 'easy' win for trimmed Biden plan

The Republican Party was willing to approve a shortened version of the infrastructure plan promoted by Joe Biden

Transportation Secretary Pete Buttigieg said Sunday that President Joe Biden's American Jobs Plan would pay for itself while upgrading infrastructure from decades past.

Biden unveiled a $2 trillion proposal Wednesday created to transform America's infrastructure over the next eight years.

Buttigieg also said the president wants to make the plan a bipartisan effort, even as Republicans push back on the plan's price tag. Sen.

Senate Majority Leader Chuck Schumer's spokesman told CNN in a statement Monday that "the Parliamentarian has advised that a revised budget resolution may contain budget reconciliation instructions".

During the interview, Manchin suggested that while he's against raising the corporate tax rate to 28%, he may be able to support raising it to 25%, citing the need to maintain America's market competitiveness.

"I've reached out to the White House a couple of times now and said, you've got an easy bipartisan win here if you'll keep this package almost focused on infrastructure", Blunt told ABC's "This Week". "But there is still a great deal that needs to be worked out", the aide said.

Democrats had used the divisive procedural tool to pass Biden's $1.9 trillion Covid relief plan last month by allowing lawmakers to bypass the 60-vote threshold typically required for breaking filibusters and moving legislation forward. The change to the corporate tax rate is just one of several proposed changes slated to amount to the nation's largest federal tax hike in almost 30 years.

Roy Blunt chairman of the Senate Republican Policy Committee
Roy Blunt chairman of the Senate Republican Policy Committee

But the proposal announced this week faces major obstacles in Congress amid criticism from the Republican Party and business lobbies that They oppose the rise in corporate taxes with which the plan is meant to finance. "The divisions of the moment shouldn't stop us from doing the right thing for the future", he said in a speech unveiling his plan last week.

"A dollar of federal spending results in only $0.67 worth of actual investment because state, local, and private sector entities reduce their spending in response to the federal dollars", think-tank president Scott A. Hodge said.

Part of the funding formula was a hike to a 28% corporate tax rate from 21% but that's going nowhere.

Trump repeatedly promised to tackle the nation's crumbling infrastructure during his presidency but never delivered on that.

Biden's plans have drawn criticism from both Republicans and Democrats, including Democratic Senator Joe Manchin, whose support could be critical to ensuring passage in a Senate split evenly between the two parties.

"We have to be competitive, and we're not going to throw caution to the wind".


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