The Biden administration has unveiled a plan to invest $2 trillion in infrastructure projects and job creation initiatives as part of efforts to rebuild the U.S. economy and compete with China.
Under the American Jobs Plan, the government will invest about 1 percent of gross domestic product on an annual basis over eight years to upgrade the country’s infrastructure, strengthen manufacturing, advance research and development, support supply chains and solidify U.S. care infrastructure, the White House said Wednesday.
The plan includes an investment of $621 billion to upgrade roads, bridges, transit systems and other transportation infrastructure; $174 billion to support the electric vehicle market; $100 billion to expand broadband access; $111 billion to improve water infrastructure; and $100 million to modernize the electric grid and power generation sector.
The administration also proposed the Made in America Tax Plan that seeks to implement corporate tax changes to raise money and help pay for investments stipulated in the American Jobs Plan over the next 15 years.
The plan will increase the corporate tax rate to 28 percent, enact a 15 percent minimum tax on large corporations’ book income, eliminate tax preferences for fossil fuels and reform the tax code by removing tax incentives for foreign derived intangible income, among other measures.
