Inside the Biden Infrastructure Plan

Podcast Summary

• Rebuilding the Backbone of America: Biden's infrastructure plan includes fixing what's broken, competing in the 21st century, and investing in people to rebuild the economy comprehensively and equitably

  President Biden's infrastructure proposal goes beyond traditional definitions of infrastructure to include not only physical improvements like roads and bridges, but also investments in people and competitiveness. The first category of infrastructure, as Biden sees it, is about fixing what's broken. This includes not just physical infrastructure like roads and bridges, but also the economic foundations of the country that have been neglected for decades. The second category is about making investments to help the country compete in the 21st century. And the third category is about investing in people, recognizing that they are the backbone of the economy. The American Jobs Plan, as Biden called it in his Pittsburgh speech, is a once-in-a-generation investment aimed at rebuilding the backbone of America in a comprehensive and equitable way.

• Modernizing essential elements of transportation and economy: Biden's infrastructure plan invests in repairing 20,000 miles of highways, 10,000 small bridges, economically significant bridges, airports, ports, waterways, and lead-based water pipes. It also focuses on racial equity and environmental justice, allocating funds for historically neglected communities and those affected by past infrastructure decisions.

  The Biden administration's infrastructure plan aims to modernize and repair various essential elements of the American transportation and economic system. This includes 20,000 miles of highways and roads, 10,000 small bridges, and economically consequential bridges. The plan also focuses on repairing or replacing airports, ports, waterways, and lead-based water pipes. Furthermore, there is a racial justice component to the plan, with a significant allocation of funds for predominantly black, Hispanic, or native American communities that have been historically neglected in infrastructure investments. The plan also includes $20 billion for communities affected by past infrastructure decisions, such as those with highways running through them, which have caused racial disparities. Overall, the Biden administration's infrastructure plan aims to address both the visible and invisible needs of the American transportation and economic system while promoting racial equity and environmental justice.

• Investing in the future economy: The infrastructure bill focuses on modernizing the economy with investments in emerging industries like 5G, semiconductors, advanced manufacturing, and electric vehicles, with a priority on clean energy and climate change.

  The infrastructure bill under discussion goes beyond traditional repairs and improvements to focus on building a new backbone for a modern, competitive economy in the 21st century. This includes investments in emerging industries like 5G broadband, semiconductor manufacturing, advanced manufacturing, and electric vehicles, with a particular emphasis on clean energy and the fight against climate change. The government is seen as guiding the development of the economy into these areas, believing that industry may not get there fast enough on its own. Additionally, there is a focus on human infrastructure, but the specifics of this were not elaborated upon in the discussion. Overall, the bill represents a significant government investment to position the US economy for future competitiveness.

• Investments in People and Communities: President Biden's infrastructure proposal includes investments in workers in sectors like home health care, education, and childcare to boost their earning potential and contribute more to the economy, but faces resistance from Republicans in Congress.

  The American Jobs Plan and the American Families Plan, which together make up President Biden's infrastructure proposal, are not just about traditional infrastructure like highways and bridges. They are also significant investments in people and communities, with a focus on underpaid workers in sectors like home health care, education, and childcare. The plans aim to boost these workers' earning potential and enable them to contribute more to the economy. However, these progressive initiatives are facing resistance from Republicans in Congress, who view them as non-infrastructure spending and are pushing back on the proposed funding methods. President Biden will need to navigate these debates to get the plans approved. Additionally, he has stated that he intends to pay for these plans through a combination of revenue increases and spending reductions, rather than relying solely on borrowing.

• Proposed Tax Increases for Corporate America in Biden's Infrastructure Plan: Biden's American Jobs Plan proposes raising corporate tax rate to 28% and taxing multinational income abroad to fund infrastructure spending. Businesses and economists have differing opinions on the proposal.

  The Biden administration's American Jobs Plan aims to pay for its infrastructure spending through tax increases on corporate America, particularly multinational corporations. The plan includes raising the corporate income tax rate from 21% to 28%, and forcing multinational companies to pay more tax on income earned abroad. This proposal has faced opposition from business groups, who argue that it's a bad time to raise taxes on businesses and that users of infrastructure should pay for its improvements through user fees like gas taxes or a vehicle miles travel tax. Economists have varying opinions on the effectiveness and fairness of these proposals, with a consensus that user fees can be a good way to raise revenue for infrastructure. However, there is a significant ideological divide in Washington regarding the potential negative impact of raising corporate taxes at this time.

• Debate over Biden's tax increases for infrastructure projects: Republicans oppose Biden's tax increases for infrastructure, while Democrats may use budget reconciliation to pass the bill without GOP votes, but keeping all Democrats on board could take months

  The debate over President Biden's proposed tax increases to fund infrastructure projects remains contentious, with conservatives arguing against the move due to potential loss of competitiveness with lower-taxed countries, while liberal economists question the effectiveness of previous tax cuts. Republicans in Congress have shown universal opposition to the plan, leaving Biden to pressure them to propose their own alternatives while also considering using the budget reconciliation process to pass the bill without Republican votes. However, the success of this approach depends on keeping all 50 Democrats on board, which may take months due to internal party disagreements over details and the size of the package.

• Biden's Push for Expansive Infrastructure Bill: Biden aims to pass a large infrastructure bill with Democratic support, marking a legislative challenge in today's polarized climate

  The Democratic Party, led by President Joe Biden, is making a significant push for a large infrastructure bill, with a decent chance of it passing in the coming months. This bill, if passed, would be one of the most expansive government initiatives in US history, surpassing even the Great Society programs of the 1960s. However, unlike past ambitious Democratic presidents like Lyndon Johnson and Franklin Roosevelt, Biden is attempting to pass these bills with almost exclusive Democratic support, as the political climate has become more polarized. The real accomplishment for Biden would be in holding together the relatively conservative Democrats with the progressive Democrats in passing this bill. While this would be a different legislative feat than Johnson's bipartisan efforts, it would be a challenging one nonetheless. In the meantime, other matters require attention, such as inspecting an unresponsive individual in handcuffs, where officers were still present upon approach.

• Georgia Trial and Corporate Response: Police Accountability and Voting Rights: The Derek Chauvin trial and Georgia's new voting law sparked discussions on police accountability and corporate involvement in social issues. Corporations like Coca-Cola and Delta Airlines spoke out against the voting law, while the governor accused them of caving to activist pressure.

  During the trial of Derek Chauvin for the murder of George Floyd, a paramedic testified that Chauvin continued to kneel on Floyd even when he appeared dead. Meanwhile, major corporations based in Georgia, such as Coca-Cola and Delta Airlines, have spoken out against the state's new restrictive voting law. These companies join a chorus of prominent black executives who have urged corporate leaders to fight against similar legislation in over 40 states. In response, Georgia's Republican governor accused these corporations of caving to pressure from activists. This trial and the political response highlight two ongoing issues: police accountability and voting rights.