US President Joe Biden [이미지 출처= EPA연합뉴스]
[아시아경제 박병희 기자] The social infrastructure bill, which President Joe Biden has promoted as the second economic stimulus law following the $1.9 trillion economic stimulus law, is expected to reveal its outline this week.
The New York Times reported on the 22nd (local time) that the White House Economic Advisory Group will deliver two bills, including the infrastructure investment bill, to President Biden this week.
One of the bills will cover infrastructure and eco-friendly energy investment. President Biden has been reviewing large-scale investments in social infrastructure to stimulate the economy, and in particular, has emphasized the expansion of social infrastructure that reflects the environment. Another bill that the Economic Advisory Group will deliver to President Biden is said to be a bill on childcare and education.
The budget for the two bills is known to be 3 trillion dollars. $3 trillion is about 13% of the US gross domestic product (GDP). The $1.9 trillion economic stimulus law signed by President Biden on the 12th was passed amid opposition from all Republican Senate and House lawmakers. The Republican Party strongly opposed large fiscal spending.
Therefore, the ruling Democratic Party and the Republican Party are expected to face another sharp confrontation over an additional $3 trillion in fiscal expenditure. There is already an expectation that there will be a greater pain than when the $1.9 trillion dollar stimulus law was used.
The Biden administration plans to push for tax increases to reduce the government burden on additional large fiscal expenditures. In this regard, a plan is being promoted to increase the corporate tax rate from 21% to 28% and to impose additional tax on high-income families with annual incomes of $400,000 or more.
However, Republican Senate Representative Mitch McConnell said it would become a Trojan horse in relation to the tax increase. He said that it is a left-wing policy for tax increases promoted by the Democratic Party and will reduce jobs. McConnell also cited the low unemployment rate and argued that the economic policies of former President Donald Trump before Corona 19 performed better.
On the other hand, White House spokesman Jen Saki said, “President Biden and the White House advisory group are considering a tax reform in which investment in workers’ families and compensation for labor, not property, are being considered.” “The predictions about this did not reflect the White House’s thoughts.”
Reporter Park Byung-hee [email protected]